Ki Young Ju, CEO of CryptoQuant, recently revealed that longstanding Bitcoin investors, often termed “ancient whales,” have encountered a substantial surge in profits, registering an impressive 223% increase. This surge in profitability is of significant note as Bitcoin’s recent halving event has reduced the amount of new bitcoin entering circulation.
Bitcoin Whales: Unrealized Profits Across On-Chain Cohorts
Ki Young Ju took to X to share interesting insights into Bitcoin’s unrealized profits across various on-chain cohorts. According to his findings, experienced whales have witnessed a staggering surge of 223% in unrealized profits, contrasting sharply with the modest 1.6% increase observed among new whales, predominantly representing traditional finance and ETF investors.
BTC unrealized profit ratio for whale and miner cohorts — Source
On the other hand, independent miners have also seen substantial gains, boasting a remarkable 131% uptick, while corporate miners, comprising mining companies, have recorded an 81% increase.
Despite these notable profit margins, Ki Young Ju believes that the accumulated profits may not suffice to signal the conclusion of the current market cycle, stating:
“In my opinion, the accumulated profits are insufficient to conclude this market cycle.”
Bitcoin Community Reacts
The notable increase in profits among ancient whales has prompted discussions within the Bitcoin community regarding its potential implications for market dynamics. While some observers speculate that these substantial gains might lead ancient whales to capitalize on their investments, potentially cashing out profits and causing market volatility, others argue that the greater risk lies with short-term holders.
Interestingly, short-term holders have observed a decline in unrealized gains on their bitcoin holdings, nearly diminishing to zero. This reduction in potential gains may minimize the chances of short-term holders engaging in selling activities.
Halving Event and Investors’ Next Action
Looking forward, market analysts are contemplating the broader impact of the 4th Bitcoin halving event on investor sentiment and market stability. This has sparked intense discussion regarding its potential ramifications for bitcoin’s price trajectory and overall market dynamics.
Historically, the halving event has been associated with increased market volatility and shifts in investor confidence. However, amidst the uncertainty surrounding the event, long-term holders appear unwavering in their commitment to Bitcoin, bolstered by significant gains and a steadfast belief in its intrinsic value.
Possible Correction Ahead
Meanwhile, renowned analyst Rekt Capital has issued a cautionary note on bitcoin amid a recent market correction. Rekt Capital, addressing his 73,400 YouTube subscribers, points out that Bitcoin halving is not priced in. He references previous Bitcoin cycles, suggesting that the current cycle does not have the same parabolic momentum as previous cycles. He states that a pre-halving correction will potentially pave the way for a bullish phase.
Comparison between different bull cycles — Source
Notably, the analyst remains optimistic about bitcoin’s long-term trajectory, anticipating a reversal point but acknowledging the uncertainty surrounding the precise bottom.
As ancient whales accumulate profits, the important question emerges: will they trigger market fluctuations by cashing out, or will their long-term strategies stabilize amid volatility? Their decisions post-halving will significantly impact the market’s trajectory, shaping Bitcoin’s current cycle.