WHALES ARE TAKING PROFITS ON BITCOIN: SHOULD WE DO THE SAME?
The largest Bitcoin holders are quietly withdrawing from the market, but there's no panic. Meanwhile, institutional investors are piling into the decline, suggesting a tightening supply. Has the peak been reached?
Bitcoin Whales: Not a Capitulation, But Profit-Taking
Bitcoin "mega whales" have been steadily reducing their holdings since 2017, even as the price reached tens of thousands of dollars. This is not irrational behavior, but rather long-overdue profit-taking.
Institutions Buy the Dip and Drain Supply
As legacy investors exit, ETF data also reveals fears of a deeper correction. Over the past month, Bitcoin ETFs have seen steady weekly inflows, with a recent net inflow of $110.52 million.
Signs of Bullish Fatigue
Bitcoin's recent decline around $106,000 is beginning to reveal cracks in the bullish structure. The steady decline in open interest and a positive but moderate funding rate suggest hesitancy among traders rather than a strengthening of their positions.
With the price remaining range-bound, the lack of an increase in open interest implies low conviction. If buyers don't act quickly, this could mark a local top before a deeper decline.
The cryptocurrency market is constantly evolving, and in this transition phase between incumbents and new institutions, significant adjustments are occurring. Recent trends indicate strategic moves rather than signs of panic. Informed investors should remain vigilant and thoroughly inform themselves before making investment decisions.
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