Bitcoin price has not had a very positive performance in 2024 despite a strong start to the year. The leading cryptocurrency has spent most of the past two quarters rallying, fluctuating between the $50,000 and $70,000 range.
This lackluster performance has fueled discussions about the current cycle, with several analysts and experts predicting whether the bull run will continue. Among the latest to note is the CEO of CryptoQuant, who gave an interesting insight into the chain about the cycle.
Why Are Whales Taking Little Profit From This Cycle?
In a post on the X platform, CryptoQuant CEO Ki Young Ju revealed that Bitcoin whales are holding on to their assets this cycle. As a result, large investors have recorded record low profit-taking compared to other cycles if the current bull run ends now.
This on-chain revelation is based on the Realized Profit Ratio by Balance Cohort metric, which measures the ratio of coins sold at a profit by an investor class compared to the total number of coins sold at a given time. It basically assesses the profitability of different groups of Bitcoin owners.
Generally, when the Realized Profit Ratio of whales is high, it means that selling is going on, when the big investors believe that the prices are too high. On the other hand, a low Realized Profit Ratio usually indicates a low level of profit taking, which means that investors are not minimizing their losses or expecting additional price gains.
Current on-chain data points to a trend where large owners have taken the least amount of profit throughout the bull cycle. This may mean that Bitcoin whales still have faith in Bitcoin’s long-term potential. Ultimately, this suggests that the current bull run is far from over, and it is possible that the price of Bitcoin will start again.
Bitcoin ‘Dolphin’ Talks Up Again: Sentiment
In a post on X, Santiment revealed that the Bitcoin “Dolphin” pool, which holds between 0.1 and 10 BTC, has been growing steadily over the past few months. Statistics have reported that this level of investors sold more profit in the first half of the year.
However, addresses holding between 0.1 and 10 BTC have been on the rise since early July. Specifically, 0.1 – 1 BTC wallets increased by 25,671 more addresses, while 1 – 10 BTC wallets increased by about 4,000 addresses.
This indicates that small investors may return to the market, which could be good for the price of Bitcoin in the coming months. As of this, the first cryptocurrency is worth 61.94 dollars, which shows an increase of 1.7% over the previous day.
