Last updated on October 7th, 2024 at 10:33 am
Bitcoin’s performance in the current bull cycle has been notably quieter than expected, with the market showing signs of unusual dynamics. According to CryptoQuant CEO Ki Young Ju, Bitcoin whales, known for influencing the market with their large holdings, have taken a different approach this time. Ju observed that if the bull cycle concludes soon, whales will experience historically low profits, a stark contrast to previous cycles.
Ju pointed out that whales have sold fewer tokens this season, suggesting a strategic shift. Many new whales are holding onto their assets instead of selling, potentially waiting for retail investors to inject fresh liquidity into the market. This shift in behavior marks a significant departure from earlier cycles, where whale activity often shaped the market’s direction.
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Whales Adopting New Strategies to Conceal Holdings
In the same vein, Ali Martinez, a crypto analyst, pointed out that it has now become the practice of the whales to scatter their Bitcoins over several addresses to hide the magnitude of their holding. He pointed out that now they range only to 1975 addresses that hold between 1000 and 10000 BTC. This approach avoids the problem of tracking the bulk of the market holdings by making it more complex.
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Ju further explained that the recent market volatility is concentrated on future trading, reducing the ramifications whales tend to have when trading using spot and over-the-counter (OTC) markets. He pointed out that these market participants, called whales, justify or sway the market more in these nostrils that remain relatively active in this cycle. Therefore, fewer such typical whale activities of the course, when conducted, raise the odds of a further, more unpredictable evolution in the price structure of Bitcoin.
Conclusion
In conclusion Bitcoin’s bull cycle has been different this time, with the price reaching a new high earlier this year before the expected halving event. However, many analysts still believe the overall market pattern is the same, and they expect Bitcoin to rise again due to economic factors. Expectations are high that Bitcoin will soon resume its upward trajectory, with socio-economic and macroeconomic factors likely to play a crucial role in driving the next phase of the market.
Also Read: Bitcoin ETFs Face Major Outflows Amid Middle East Crisis, BlackRock Stays Bullish
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.