New Whales and Market Trends to Watch
Bitcoin (BTC) has risen more than 5% in the last 24 hours, rising above $70,000. This is important Bitcoin price The increase has triggered interest and curiosity in understanding the fundamental factors driving this upward momentum in the market.
New Whales Driving Bitcoin Accumulation Trend
Since January, the realized capitalization of new whales has been increasing steadily. Realized capitalization calculated based on the price at which each was realized Bitcoin It shows how much money was invested in Bitcoin when it was last purchased or moved. The increase in the cap for new whales points to the active accumulation of these large investors.
In contrast, the actual upper limit for older whales remained relatively constant. This stability shows that long-term investors are holding on to their Bitcoins. This holding behavior of older whales underlines their confidence in the future value of Bitcoin.
The gradual growth in the cap for addresses holding over 10,000 BTC reflects the slow but steady accumulation of the largest Bitcoin holders. This trend shows that even the largest investors are gradually increasing their Bitcoin positions.
This accumulation of the largest shareholders is a positive signal for the market. Major investors continue to be interested in and trust Bitcoin.
Unrealized BTC Profits Show Significant Gains
Unrealized profit and loss reflects the potential gains or losses that could occur if holders sold their BTC at the current market price. Unrealized profit has been increasing steadily since the beginning of the year, reaching its peak in mid-March. This increase indicates that large shareholders are realizing significant potential gains.
The profit levels of new whales are more variable than those of old whales and large whale owners. Old whales and the largest whale owners show steady and significant unrealized profits, while new whales are more volatile but still in profit. This volatility among new whales highlights the dynamic nature of new investors in the market.
Bitcoin’s 51% gain to date reflects investors’ expectations for US monetary expansion. In April 2024, the M2 monetary base exceeded $21.0 trillion. This increase in money in circulation indicates that inflationary pressures are increasing, although companies and individuals have been hesitant about spending for some time.
United States Federal ReserveStrategies to manage inflation and avoid recession can impact liquidity. As a result, this could affect the attractiveness of scarce assets like Bitcoin. Investors are watching the Federal Reserve’s actions closely because they could have significant impacts on the future value of Bitcoin.
So read: Ethereum Is the Most Trending Asset Amid SEC ETH ETF Rumors and $341 Million Whale Purchases
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Maxwell is a crypto-economic analyst and Blockchain enthusiast who is passionate about helping people understand the potential of decentralized technology. I write extensively on topics like blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its effects on economic freedom and social well-being.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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