The flagship cryptocurrency Bitcoin is seeing new whales ‘fiercely’ add BTC to their holdings amid an accumulation trend that the market “has never seen,” as whales that have entered the market during the latest bull run keep looking for profit.
According to the CEO of popular cryptocurrency analytics firm CryptoQuant, new whale wallets, which are primarily custodial wallets and those associated with the spot Bitcoin exchange-traded funds (ETFs) that started trading in the United States earlier this year, have “not generated sufficient profit” to start realizing their gains.
Per Ki Young Ju, the current volatility the cryptocurrency space is seeing is “just a game in the futures market.” That volatility saw the price of the flagship cryptocurrency Bitcoin top $66,000 late last month, before plunging to around $60,000 in the beginning of October. It has since recovered to now trade above $61,000.
CryptoQuant’s CEO added that real whales “move the market through spot trading and OTC [over-the-counter] markets,” and that while old whales “haven’t seen particularly high returns,” the whales that recently entered the market “barely made any profits.”
Per his words, these whales could dump their holdings once retail investors start adding liquidity to exchanges when interest rises.
He also added that the recent whale accumulation data “shows little correlation with ETFs,” suggesting that the whales entering the market aren’t just those buying through spot Bitcoin ETFs.
As CryptoGlobe reported, a recent report by QCP Capital details the cryptocurrency space was “hit much harder” than other risk assets by the rising geopolitical tensions that culminated in Israel’s ground offensive into Lebanon and Iran’s ballistic missile attack, as the S&P 500 index lost around 1% of its value, and oil jumped more than 2% while BTC plunged.
Featured image via Unsplash.
