Crypto Giants Resume Earning, Lessening Anxiety over 'Sell from May' Predicament | Weekly Observation of Whales' Financial Gain
An Unbridled Look into Bitcoin's Unyielding Rally
Last week, Bitcoin's price soared over 12%, gushing all the way up to $96,500 — a jaw-dropping figure that even out-did the average investment made by "short-term whales" — those who jumped on the Bitcoin bandwagon within the last six months.
CryptoQuant analyst JA Maartunn spilled the beans to BeInCrypto that these whales have successfully reclaimed their break-even level of $90,890. That's right, they're swimming in the green, slashing the urge to sell, and churning up market stability.
Whales Rejoice, Market Stays Strong
Let's talk about these so-called short-term whales, shall we? They're the ones owning wallets that have been lugging Bitcoin for less than half a year. With the price of BTC racing ahead of their average purchase price, these whales are now elevating their financial status from underwater to above water.
In the past, when these guys hit profitability, they'd typically take a breather or dial down the selling pressure, doing their bit in keeping the market steady.
An in-depth look at CryptoQuant's Short/Long-Term Whale Realized Price chart, and you'll spot the orange line (short-term whale cost basis) bobbing closer and closer to the overall market price curve. Looks like they stand to make a profit if they decide to cash out now.
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What's a pirate without an anchor?
Ahoy there, the on-chain data is screamin' loud – a deep, negative funding rate on perpetual swaps signals that those dangling on short positions are pushing price down hard. But if the buying pressure continues, they're in for a world of hurt – a potential squeeze, as demonstrated in old salty sailors' tales!
Meanwhile, long-time holders have been relentless with their accumulation, topping the network hash rate at a staggering 1.04 ZH/s this month. Parley with that, and it's evident that miners and wise investors still got faith in the rally's path.
Steer by the stars, not the compass
As summer approaches, seasonal trends might spell trouble in store. Historically, Bitcoin has shone bright, with an average Q2 gain of 26%, but the median has been a sneaky 7.6% since 2013. Be prepared for those sudden downturns, like the 2022 Q2 plunge of 56.2%.
Q3 isn't so hot, either, averaging a limp 6% return and a slightly negative median. For those bracing for the "sell in May" vibe, remember that the S&P 500 has only managed a measly 1.8% return from May to October since 1950.
But fear not! Macro factors could be stacking in Bitcoin's favor. US inflation has dropped to a relaxed 2.4%, and the markets now hope for future Fed rate cuts in 2025. Farewell, dollar, and flutter in the direction of risky assets like Bitcoin!
Spot Bitcoin ETFs drew in a hefty $3 billion in net inflows last April, signaling strong demand from institutions.
In conclusion, the return of short-term Bitcoin whales to profit is driven by price rises and strategic accumulation, lowering selling pressure, and bolstering market stability. But beware of whale mood swings and potential short-term corrections – always keep an eye on funding rates and keep your economic compass primed during the summer sail.
Participate in your financial voyage – dive into cryptocurrency platforms like Uphold, eToro, Plus500, Coinbase, and Moonacy, and let your fortunes be tossed by the waves of Bitcoin's future!
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Just remember, every voyage comes with its share of risks - make informed decisions, consult experts, and keep your eyes on the glistening crypto horizon!
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- The price rise of Bitcoin has helped short-term whales recoup their investment and move from an underwater financial status to above water.
- When short-term whales become profitable, they usually reduce selling pressure, contributing to market stability.
- An analysis of CryptoQuant's Short/Long-Term Whale Realized Price chart shows the short-term whale cost basis moving closer to the overall market price curve, indicating potential profitability if they choose to sell.
- A negative funding rate on perpetual swaps suggests short-term investors who have taken short positions may be under pressure and face the risk of a potential squeeze if buying pressure continues.
- Long-term Bitcoin holders have been accumulating the network hash rate aggressively, indicating a strong belief in the rally's path.
- While summer trends may signal potential downturns for Bitcoin, macro factors such as lowering US inflation and a possible future Fed rate cut in 2025 could work in Bitcoin's favor.
- The return of short-term Bitcoin whales to profitability, combined with strategic accumulation, reduces selling pressure and strengthens market stability – but investors should keep a close eye on funding rates and market fluctuations to make informed decisions.
