As reported by Cointelegraph, the recent surge in Bitcoin’s value has prompted ‘big whales’ of the cryptocurrency world to continue their selling spree. These major Bitcoin holders, owning more than 10,000 BTC, have persisted in profit-taking since Bitcoin’s peak. This trend has been ongoing since 2017, contributing to the dynamics of the Bitcoin market.
Renowned analyst Willy Woo, in his June 3 post, shed some light on this scenario. He pointed out the race among institutions and sovereigns to buy billions in BTC, while simultaneously questioning the identity of the sellers. “Most of those coins were bought between $0 and $700 and held for 8 to 16 years,” he elucidated. Woo’s analysis shows a consistent decline in the supply held by these whale entities, with a balance between 10,000 and 100,000 Bitcoin over the past eight years. This has resulted in a decrease of about 40% from 2.7 million to roughly 1.6 million BTC.
Despite the current high trade values, Woo is optimistic about Bitcoin as a long-term investment, predicting it to be “one of the best investments you’ll see in your investment career” within the next decade.
On the same day, Glassnode reported that the recent Bitcoin breakout, peaking just below $112,000 on May 22, resulted in a significant increase in profits. The average coin captured a profit of 16%. Not more than 8% of trading days have been more profitable, indicating a significant shift towards profit-taking.
After reaching its peak in May, Bitcoin has experienced a dip of 5.5%, bottoming out at $105,000 on June 3. However, it soon bounced back to $106,800, only to fall back to $105,750 during early trading on June 4. Despite these fluctuations, Bitcoin has remained above six figures for a record 27 days, surpassing the 18-day streak in January.
