Traditional investors persistently procuring Bitcoin from old whales

According to on-chain information, large-scale Bitcoin (BTC) owners, or “whales,” have recently transferred a significant amount of their Bitcoins to institutional investors. This trend follows increasing demand for Bitcoin among traditional financial institutions on Wall Street.

Ki Young Ju, the founder and CEO of CryptoQuant, recently pointed out an intriguing observation. He compared the demand and supply levels of Bitcoin among old and new “whale” (large-scale) investors in his latest analysis.

Large-scale Bitcoin investors, who are experienced whales in the crypto market, are offloading their Bitcoins to more recent Traditional Finance (TradFi) investors, rather than retail buyers. This trend is evident from on-chain data.

— Ki Young Ju (@ki_young_ju) March 28, 2024

Based on the data we have, it appears that there is increasing demand from new large-scale Bitcoin buyers, or emerging whales, and this trend is happening simultaneously with more selling from existing major Bitcoin holders, the established whales.

It’s possible that this noticed trend represents senior Bitcoin owners attempting to cash in on their investments during the ongoing price escalation, reaching over $73,000 per coin.

The data shows that the current market behavior became apparent during the last two market cycles, starting around early 2017. Notably, this trend emerged at the beginning of the 2017 bull market. As a result, Bitcoin experienced significant growth, increasing from $966 in January 2017 to reaching its all-time high of $19,666 by the end of that year.

In the previous bull market, the shift in control lasted for approximately 332 days. Market players, specifically those with bullish sentiment who joined in 2017, repeated this trend during the 2021 bull market, transferring their Bitcoin to new large-scale investors over a span of around 136 days.

During the present bull market, there’s been a noticeable increase in the number of new significant Bitcoin investors. Surprisingly, most of these newcomers are established institutional investors, showing a greater affinity for Bitcoin than ever before.

Due to the thumbs-up from regulators and impressive performance of Bitcoin ETFs, these investment vehicles have brought Bitcoin into the limelight on Wall Street. After experiencing a series of withdrawals, spot Bitcoin ETFs have recently seen two consecutive days of new investments, suggesting renewed curiosity.

Bitcoin shows more room for growth

In the past, Bitcoin’s ownership changing hands has generally coincided with market highs. This implies that there may be further significant increases in Bitcoin’s value since the current accumulation rate is still quite low.

Traditional investors persistently procuring Bitcoin from old whales

In addition, Bitcoin’s price being above $70,000 doesn’t mean the RSI of 45 suggests it’s overbought. Instead, this level indicates that Bitcoin still has room to rise since it’s not yet in the overbought territory.

Based on information from Santiment, approximately 13,100 whale-sized Bitcoin transactions, valued at over $100,000 each, have occurred in the last two days.

Each day, the count of BTC transactions totaling over $1 million grew by 3.8%, amounting to 2,789 such transactions – up from the previous 2,691.

At this point, the significant level of whale involvement could make Bitcoin price fluctuations more pronounced.

Currently, Bitcoin is priced at approximately $70,759, representing a 1.61% increase over the previous 24-hour period. Over the last week, Bitcoin has experienced a growth of more than 4%, aiming to regain its footing following recent setbacks.

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2024-03-28 12:52