Bitcoin Bulls Take Charge as Whales Accumulate
The fear of mass-dumping might be people having PTSD, says Ki Young Ju of CryptoQuant, who expects the bull run to continue.
Yet another day of this week is seeing Bitcoin trending up.
The price of the leading digital currency jumped to nearly $52,500.
“We are at the stage of the market when BTC starts to go up more aggressively. I believe we will see $100k+ this summer, and the white line will be the zone I will sell most of my spot holdings in anticipation of buying $50k again,” says trader Galaxy.
These latest gains have been the result of whale accumulation. At around $48k, institutions have been doing some heavy BTC buying.
“Whales accumulating BTC. They are making a lot of bear traps lately, but the price seems to recover the institutional buying level, 48k. Looking at recent Coinbase outflows, most of the outflows that went to custody wallets were at 48k price,” noted Ki Young Ju, the CEO of Crypto Quant.
The market, which wasn't’ fully convinced that bears have been all done, expecting Bitcoin to be in a consolidation phase, is also feeling the bull effects as price makes strong upward moves.
Unlike the 2017’s usual 30%-40% pullbacks, which if happen would take us to just under $35k, this time, Bitcoin price has seen about 26% correction as we dropped from the all-time high of $58,300 to just about $43,000.
“People have PTSD about mass-dumping. But don't worry, we're good now,” said Ki Young Ju, pointing to the whale dumping indicators that suggest fewer whales compared to the past. “The bull-run is likely to continue,” he added.
It is not just institutions either; retail investors also arrived in January, as seen in the chart, which shows the increase in Bitcoin users visible on its blockchain per day.
“Like prior cycles, I expect this peak to top out higher than the ones before it. Gives you an idea how this bull market is just warming up,” said on-chain analyst Willy Woo.
However, it is worth noting that the users of PayPal, Cash App, and Robinhood, among others, don't really show up on the blockchain.
Woo explained that users on layer-2 like exchanges aren't really counted, and “There's 3 users on exchanges that never touch the blockchain for every 1 user on-chain.” Most of the noobs basically won't appear on the blockchain.
Interestingly, that sector has seen the highest growth, he said.
As revealed by these crypto service providers, they have seen immense growth. PayPal users actually bought both the dips of this year.