Recent on-chain data reveals that long-time Bitcoin (BTC) holders, known as whales, are transferring their BTC holdings to traditional institutional investors, highlighting Wall Street’s increasing interest in the leading cryptocurrency.
The analysis conducted by Ki Young Ju, the CEO of CryptoQuant, compared the demand and supply of Bitcoin among old and new whale addresses. The data indicates a rise in demand from new whale entities, while established whale addresses are selling off their holdings.
This trend suggests that older addresses are looking to profit from their Bitcoin holdings, especially during the current price surge that has seen BTC surpass $73,000. Interestingly, this pattern was observed in previous market cycles, notably in early 2017, coinciding with the start of the 2017 bull run where Bitcoin reached a peak of $19,666.
During the 2017 bull market, ownership changes persisted for 332 days. A similar trend was seen in the 2021 bull run, with bullish investors from 2017 selling their BTC to new whale entities over 136 days.
A new group of whale entities has emerged in the current bull market, mainly comprising traditional institutional investors showing increased interest in BTC. This shift is attributed to the approval and success of spot Bitcoin ETFs, introducing Bitcoin to Wall Street.
Despite Bitcoin trading above $70,000, its daily RSI remains at 45, indicating that the cryptocurrency is not yet overbought and has potential for further growth. Whale transactions worth at least $100,000 have been consolidating around 13,100, while transactions worth at least $1 million increased by 3.8%.
With Bitcoin currently priced at $70,759, up 1.61% in the last 24 hours and over 4% in the past week, it is poised to recover from recent losses. The high level of whale activity could introduce some volatility to the market.
In other news, a court has rejected the SEC’s claim that Coinbase Wallet is an unregistered broker, and Fidelity has filed for an Ethereum ETF. Stay updated with the latest developments by following us on Google News.