According to a Quant Analyst, The Ancient Bitcoin Whales Could Cause BTC Seller Exhaustion—Here’s What it Means
The price of bitcoin has recently diverged from a crucial level of support and dropped below $20,000. Significant concerns about inflation and rate hikes signaled by central banks, particularly the US Federal Reserve, have caused BTC’s value to halve during the previous month.
Amid the ongoing crypto crisis, popular quant analyst claims he is closely monitoring the behavior of old Bitcoin whales because the investment group may force sellers to run out of supply.
Ancient BTC Whales Still in Range
Ki Young Ju, the CEO of CryptoQuant, reveals that despite the dramatic decline of the king cryptocurrency over the past few months, ancient Bitcoin whales, or entities that have kept their big BTC stacks for over seven years, are still in slumber.
Ancient Bitcoin whales are still silent in this area and the realized price of $358 is still 54x even though they are older than seven years. Most newcomers, including institutions and miners, are currently submerged. Until the ancients supply some BTC, the sell-side supply on the market would be running low.
Ancient #Bitcoin whales are still quiet in this range.They're over 7 years old and the realized price is $358, still 54x. Most newbies are now underwater including institutions and miners.The market would be running out of sell-side supply until the ancients provide some BTC. — Ki Young Ju (@ki_young_ju) July 1, 2022
He says that the earliest Bitcoin whales last traded when Bitcoin climbed to almost $47,000 on March 28. Since then, the most valuable cryptocurrency has experienced a sharp decline, dropping about 60% of its value in only a little over three months.
This selling pressure came from @Binance and @FTX.$BTC Exchange Inflow CDD(Coins Days Destroyed) indicates old whale deposits. Binance's Inflow CDD reached a year-high before the drop.Live Chart — Ki Young Ju (@ki_young_ju) June 13, 2022
Ju also mentions that he is keeping an eye on the Coinbase premium index for Bitcoin, which he notes recently turned positive for the first time since April. The quant analyst believes that institutional investors are snatching up BTC at its current levels because of a strong Coinbase premium chart.
The quant analyst pointed out in June that the majority of institutional investors, brokerage houses, and market makers (MMs) with US locations use Coinbase to buy and sell Bitcoin. Additionally, he stated that a rising mood among wealthy investors will be indicated by a rising Bitcoin Coinbase premium index.Source