Key Points
- A Bitcoin whale’s first purchase in 1.5 years has reinvigorated interest in the market.
- Despite market stagnation, the average Bitcoin investor still sees an unrealized profit of almost 120%.
A notable Bitcoin investor, often referred to as a ‘whale’, has recently made a significant purchase, sparking renewed interest in the market. This is the first time the investor has bought Bitcoin in 1.5 years, demonstrating a keen sense for timing market opportunities.
The savvy investor had previously acquired approximately 41,000 BTC during the 2022 bear market, when the average price was $19,000 per BTC. They then sold 37,000 BTC during the bull markets of 2023 and 2024, when the average price was $46,000 per BTC, netting over $1 billion in profit.
Stagnation and Profit
Despite the recent lack of volatility in the Bitcoin price, the average investor is still making money. According to data from Glassnode, the average unrealized profit is nearly 120%. This suggests that the demand side has been able to absorb sell-side pressure and HODLer divestment, which has resulted in stable prices and reduced volatility. However, this stability has also led to a sense of boredom and indecision among investors.
Institutional traders have continued their cash-and-carry trade strategy, reinforcing expectations of range-bound trading. This lack of significant price movement has contributed to a general sense of market fatigue, leading to a 40% drop in Bitcoin’s trading volume, currently standing at $19.4 billion. Meanwhile, Bitcoin is trading at around $65,680, down by around 2.5% in the last seven days.
Sell-off Condition
Data from CryptoQuant shows that a number of long-term Bitcoin holders and miners have sold their holdings during this period, which has contributed to the market’s lack of upward momentum. Large Bitcoin holders have sold over $1.2 billion worth of BTC, likely through brokers. In addition, the Bitcoin spot exchange-traded funds (ETFs) experienced a $460 million outflow during the same period. Ki Young Ju, the CEO of CryptoQuant, noted this on social media, stating, “If this ~$1.6B in sell-side liquidity isn’t bought OTC, brokers may deposit BTC to exchanges, impacting the market.”
While some Bitcoin holders are selling their holdings out of fear, the activity of strategic whales, such as the one identified by Lookonchain, demonstrates a continued belief in the long-term value of Bitcoin. These large purchases can boost investors’ confidence and impact the broader market sentiment.
