Bitcoin price hasn’t had the easiest performance in 2024 despite a robust start to the year. The flagship cryptocurrency has spent most of the last two quarters consolidating, hovering around $50,000 and $70,000.
This uninspiring result sparked conversations about the current cycle, with several analysts and experts predicting whether the bull market would continue. Among the latest comments is the CEO of CryptoQuant, who provided some intriguing insight into the on-chain cycle.
Why are whales making less profit in this cycle?
In a post on Platform X, CryptoQuant CEO Ki Teenage Ju revealed that Bitcoin whales have held onto their assets this cycle. As a result, huge investors have set a record for the smallest profit taking compared to other cycles if the current bull market ends now.
This on-chain discovery is based on the Balance Cohort’s realized profit rate, which measures the ratio of coins sold at a profit by a class of investors to the total number of coins sold at any given time. Essentially, it evaluates the profitability of different cohorts of Bitcoin holders.
Typically, when the whales’ realized profit ratio is high, it means that a sell-off is likely underway and huge investors believe that prices have peaked. On the other hand, a low realized profit ratio often indicates a low level of profit taking, which means that investors are not cutting their losses or expecting further price increases.
Current on-chain data shows a trend where huge holders have made the smallest amount of profits throughout the bull cycle. This could mean that Bitcoin whales still believe in Bitcoin’s long-term potential. Ultimately, this suggests that the current bull run is far from over and there is a possibility of a resumption of the Bitcoin price uptrend.
“Dolphin” Bitcoin addresses are gaining popularity again: Santiment
In the post on X, Santiment revealed that Bitcoin’s “Dolphin” cohort, holding between 0.1 and 10 BTC, has grown steadily over the past few months. Analysts said that in the first half of the year, investors in this category sold mainly for profit.
However, since the beginning of July, the number of addresses containing from 0.1 to 10 BTC has been increasing. Specifically, 0.1 – 1 BTC wallets grew by 25,671 more addresses, while 1 – 10 BTC wallets grew by approximately 4,000 addresses.
This means that compact investors may return to the market, which may have a positive impact on the price of Bitcoin in the coming months. As of this moment, the main cryptocurrency is trading at $61.94, reflecting an augment of 1.7% over the last day.
