The price of Bitcoin in 2024: A Closer Look at Whales and Dolphins
Despite a strong start to the year, the price of Bitcoin has been anything but straightforward in 2024. The flagship cryptocurrency has been mostly consolidating, oscillating within the $50,000 and $70,000 range for the past two quarters.
This lackluster performance has sparked discussions about the current cycle, with analysts and experts questioning whether the bull run is still intact. Recently, the CryptoQuant CEO provided interesting insights into the on-chain dynamics of the cycle.
Why Are Whales Holding onto Their Bitcoin?
According to CryptoQuant CEO Ki Young Ju, Bitcoin whales have been holding onto their assets this cycle, setting a record for the least profit-taking compared to previous cycles. This revelation is based on the Realized Profit Ratio by Balance Cohort metric, which analyzes the profitability of different cohorts of Bitcoin holders.
Typically, a high Realized Profit Ratio for whales signals a sell-off, indicating that large investors believe prices have peaked. Conversely, a low ratio suggests minimal profit-taking, implying that investors are optimistic about further price gains.
The current on-chain data indicates that large holders are taking fewer profits than in any previous bull cycle. This suggests that Bitcoin whales remain confident in the cryptocurrency’s long-term potential, hinting that the current bull run may have more room to run.
Rise of Bitcoin ‘Dolphin’ Addresses
Santiment recently reported that the number of Bitcoin ‘Dolphin’ addresses, holding between 0.1 to 10 BTC, has been steadily increasing in recent months. While these investors mostly sold for profits in the first half of the year, there has been a resurgence in these addresses since July.
The growing number of small-scale investors entering the market could bode well for the Bitcoin price in the coming months. Currently, Bitcoin is valued at $61,940, showing a 1.7% increase in the past day.
In conclusion, the data suggests that Bitcoin whales are holding onto their assets, indicating continued confidence in the cryptocurrency’s potential. The resurgence of ‘Dolphin’ addresses also points to growing interest from small-scale investors. Overall, the Bitcoin price trend may continue upward, with potential for further gains in the near future.
