Old whales consistently supplying Bitcoin to traditional investors
According to on-chain data, long-time Bitcoin holders are selling their BTC to traditional institutional investors, which indicates increasing interest in the cryptocurrency on Wall Street. CryptoQuant CEO Ki Young Ju analyzed the demand and supply of Bitcoin across old and new whale addresses, revealing a surge in demand from emerging whale entities and heightened selling activity among established whale addresses. This pattern suggests that older addresses are capitalizing on profits from their Bitcoin holdings, especially during the current price discovery phase where BTC has surged above $73,000. This trend was previously observed in the market during the 2017 bull cycle, and it has resurfaced in the 2021 bull run. The difference this time is that the new whale entities are predominantly traditional institutional investors who have shown a significant interest in BTC due to the success of spot Bitcoin ETFs. Despite Bitcoin’s current price above $70,000, its daily relative strength index (RSI) indicates that it is not overbought, suggesting potential for further growth. Whale activity has been consolidating around the 13,100 mark for transactions worth at least $100,000, and the number of transactions worth at least $1 million has increased by 3.8%. The high level of whale activity could lead to some volatility in the market. Bitcoin is currently trading at $70,759, with a 1.61% increase in the past 24 hours and a 4% gain over the last week.
