Bitcoin’s trading volume on Coinbase has surged in the past week, coinciding with notable price fluctuations. According to Ki Young Ju, CEO of CryptoQuant, large-scale investors—commonly called “whales”—influence Bitcoin’s price action.
Data shows that Bitcoin’s spot trading volume on Coinbase increased by over 30% in just seven days while a negative premium was observed on the platform.
This heightened activity has led to significant market reactions, with Bitcoin experiencing a 1.70% decline in the past 24 hours, bringing its price to $88,388.78, according to CoinMarketCap.
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Diverse Cost Basis Highlights Varied Bitcoin Market Players
Ki Young Ju’s analysis revealed critical insights into Bitcoin’s cost basis across different market participants. According to his findings, exchange-traded funds (ETFs) and custody wallets acquired Bitcoin at an average price of $89,000.
On the other hand, Binance traders manage to keep their BTC at a much lower cost of around $59000. Investors, particularly mining companies and those with a long investment horizon, have bought Bitcoin at lower prices.
These whales have maintained their positions in the crypto market for years and now use BTC, which they purchased at $25,000. These fluctuating prices have expounded on the diversified entry points of investors, something that strongly accrues to their varying risk profiles and investment plans.
Historical patterns indicate that when Bitcoin’s price falls below key cost basis levels, it has signaled previous bear markets. In past downturns—such as those in May 2022, March 2020, and November 2018—Bitcoin’s price dropping below mining companies’ cost basis confirmed bearish trends.
Despite the volatility, Ki Young Ju maintains that the market is still in a bull phase. In his view, even a 30% correction from Bitcoin’s all-time high (from $110,000 to $77,000) is still within prior bull phases.
Market Reactions and Expert Views on Bitcoin’s Trajectory
Prominent figures in the cryptocurrency industry have weighed in on the latest Bitcoin movements. Strategy’s Michael Saylor responded to the price fluctuations with a brief yet optimistic post on social media, stating, “Bitcoin on sale.”
However, noted Bitcoin skeptic Peter Schiff offered a contrasting view, suggesting that the market downturn is only the beginning of a prolonged decline. He emphasized that Bitcoin’s recent drop does not yet indicate full panic or capitulation, which he believes is necessary before a true bottom can be established.
While opinions on Bitcoin’s future remain divided, the data suggests that whale activity on Coinbase plays a crucial role in short-term price movements. Analysts continue to monitor the impact of institutional investments and broader market conditions on Bitcoin’s trajectory.
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