Key Points
- The ongoing market uncertainty and bearish selloffs are predicted to intensify due to new Bitcoin whales.
- CryptoQuant CEO Ki Young Ju anticipates high volatility as new Bitcoin whales are experiencing unrealized losses.
The crypto market is still grappling with uncertainty and bearish selloffs, and the situation could worsen due to new Bitcoin whales.
Ki Young Ju, CEO of CryptoQuant, shared a chart indicating that new Bitcoin whales have moved into the loss zone, which could lead to increased volatility.
Bitcoin Whales Experiencing Losses
According to the data, these new Bitcoin whales are witnessing unrealized losses as Bitcoin’s value has dropped from its peak of $126,198. Ju’s analysis indicates that volatility is imminent.
Ju noted that this indicator doesn’t necessarily predict the market’s next move. In the past, such as in June and July 2021, a high unrealized profit ratio among new Bitcoin whales led to increased accumulation, pushing Bitcoin’s price above a previous all-time high of $68,000.
In contrast, in February 2022, a strong selloff was observed in Bitcoin and the broader crypto market when the indicator went “underwater.”
Bitcoin’s Downward Trend
Bitcoin has been experiencing a downward trend, with expectations of high volatility. On October 14, Bitcoin’s value dropped to $111,569.
This selloff coincides with US-based spot Bitcoin exchange-traded funds recording a net outflow of $326.4 million on October 13, according to data from Farside Investors. The outflows primarily came from GBTC, BITB, and FBTC, while BlackRock’s IBIT saw an inflow of $60.4 million.
Just a week ago, Bitcoin-based investment products saw a net inflow of $2.71 billion.
Spot Ethereum ETFs registered a deeper net outflow of $428.5 million, led by ETHA’s $310.1 million selloff. Ethereum also experienced a 4% drop to $3,990.
On October 12, Binance saw a USDT inflow of roughly $1.4 billion, which initially brought bullish momentum to the market. However, in the past 24 hours, the exchange has seen a net outflow of just over 190 million USDT, according to CoinGlass data.
When stablecoins leave centralized exchanges, it often indicates that market participants are feeling fear, uncertainty, and doubt. This negative sentiment could potentially lead to market-wide selloffs.
