On-chain data analysis confirms a trend where long-term holders of Bitcoin (BTC), often referred to as whales, are transferring their holdings to traditional institutional investors. This shift in ownership coincides with a growing interest in Bitcoin within Wall Street circles.
Ki Young Ju, CEO of CryptoQuant, observed this trend by comparing the activity of established and emerging whale addresses on the Bitcoin network. The data indicates a surge in demand from new whale entities, coupled with increased selling activity among older whale addresses.
This observed pattern suggests that older investors may be capitalizing on profits from their Bitcoin holdings, particularly amidst the current phase of price discovery, with BTC surpassing $73,000.
Similar trends were observed during previous market cycles, notably during the 2017 bull run. During that time, significant changes in ownership occurred over several hundred days, with a similar pattern emerging during the 2021 bull market but over a shorter period.
What sets the current trend apart is the composition of the new whale entities, primarily comprising traditional institutional investors. This shift is attributed to the introduction and success of spot Bitcoin ETFs, which have facilitated Bitcoin investment on Wall Street.
Despite Bitcoin’s price exceeding $70,000, indicators such as the daily relative strength index (RSI) suggest that it remains below overbought levels, indicating potential for further growth.
Data from Santiment highlights ongoing whale activity, with transactions exceeding $100,000 and $1 million remaining consistent. This level of activity could contribute to increased volatility in the Bitcoin market.
As of now, Bitcoin is trading at $70,759, reflecting a moderate increase over the past 24 hours and a positive trajectory over the week, aiming to recover recent losses.