May 25, 2024
Bitcoin Halving Impact: New Whales, ETFs Up Only 1.6% in Potential Profit
Bitcoin Halving

Bitcoin Halving Impact: New Whales, ETFs Up Only 1.6% in Potential Profit

Institutional investors holding Bitcoin ETFs are currently up only 1.6% in unrealized profit, signaling a lack of significant selling pressure in the short term. This data aligns with the notion that the recent dip below $60,000 could be the local bottom for Bitcoin.

Whales’ Unrealized Profit Margin

Short-term Bitcoin whales, individuals holding at least 1,000 BTC for up to 155 days, are also experiencing minimal unrealized profit, standing at just 1.6%. In contrast, long-term whales holding the same amount for over 155 days are enjoying a 223% unrealized profit, according to CryptoQuant data.

Source: CryptoQuant

Mining Firms and Bitcoin Selling

While big mining firms have seen an 81% unrealized profit, they have refrained from selling in anticipation of the Bitcoin halving. Bitcoin selling by the top five mining firms hit a two-year low in the first quarter of 2024, further suggesting stability in the market.

Source: Bitwise

Technical Analysis and Market Outlook

Bitcoin’s price dipped below $60,000 before rebounding, leading technical analysts to speculate on a potential “double bottom” pattern. Key technical indicators have reset from overbought territory, indicating a neutral stance in the market.

Source: TradingView

Expert Opinions on the Bitcoin Bottom

Experts such as Arthur Cheong, founder and CIO of DeFiance Capital, believe that the recent dip likely marked the local bottom for Bitcoin. Additionally, popular crypto trader Satoshi Flipper suggests that Bitcoin could target $72,000 based on chart patterns.

https://twitter.com/SatoshiFlipper/status/1781259568795762725

ETF Inflows and Market Impact

Institutional net inflows from U.S. spot Bitcoin ETFs have turned negative as the halving approaches, with over $147 million worth of cumulative net outflows on April 18. This slowdown in ETF inflows has contributed to downward price action.

Conclusion

While uncertainties persist in the Bitcoin market, data on institutional investors, whale activity, and technical analysis provide valuable insights for investors. As the halving approaches, market participants are closely monitoring developments to gauge the future direction of Bitcoin’s price.

Image by Sketchepedia on Freepik

Related posts

Bitcoin’s Path to One Billion Transactions: Post-2024 Halving Insights

Christian Green

Bullish Signals: Bitcoin Halving and Spot ETFs Point to Price Surge

Christian Green

Bitcoin’s $435K Price Target by 2028 Halving: Analysis

Christian Green

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Please enter CoinGecko Free Api Key to get this plugin works.