Bitcoin Whales Inject Over $100 Billion, Indicating Market Shift
Recently, there has been a significant increase in investment by new Bitcoin whales, reaching over $100 billion on October 6th, according to data from CryptoQuant. These new whales, who have been holding BTC for less than 155 days on average, now make up 48.8% of Bitcoin’s total realized cap. This is a substantial amount, almost matching the investment made by the “old whales” who have been in the market longer.
The realized cap is an essential metric that calculates the value of each Bitcoin’s unspent transaction output (UTXO) based on its price when it was last moved. It helps to determine how much value is stored in Bitcoin. The recent surge in investment by new whales has set a new record, with their participation in the total realized cap reaching an all-time high on October 6th.
CryptoQuant CEO Ki Young Ju described this trend as a “generational shift,” indicating a changing landscape in the Bitcoin market. He predicts that the realized cap of new whales will soon surpass that of their older counterparts, highlighting the increasing influence of these new investors.
In addition to the influx of new whales, there have been other significant developments in Bitcoin’s on-chain data. The number of active addresses in the network broke an 11-month downtrend on October 8th, signaling organic network growth and adoption. This positive trend bodes well for Bitcoin’s future as a global monetary network, according to Jamie Coutts, chief crypto analyst at Real Vision.
However, Coutts also noted that the predictive power of active addresses has decreased over the past four years, suggesting that other metrics may be needed to understand market trends fully. A report by Glassnode on October 8th revealed that the supply held by BTC short-term holders is leaning towards profit, indicating a positive sentiment in the market.
Despite these positive indicators, there are concerns about spiking speculation in futures contracts and the potential for increased volatility. Macro market signals and the behavior of short-term holders will be crucial in determining near-term price action. The market may face pressures from deleveraging and liquidations, highlighting the need for caution in the current market environment.
Overall, the rise of new Bitcoin whales and other on-chain data trends indicate a shifting market landscape with both positive developments and potential risks. Investors and analysts will need to closely monitor these trends to navigate the evolving Bitcoin market successfully.
