A popular quant analyst says he’s keeping a close watch on the activities of ancient Bitcoin (BTC) whales as he notes the investor cohort could cause sellers to run out of supply.
CryptoQuant chief executive Ki Young Ju tells his 301,700 Twitter followers that old Bitcoin whales, or entities that have held their large BTC stacks for over seven years, are still in hibernation despite the king crypto’s sharp downturn over the last few months.
“Ancient Bitcoin whales are still quiet in this range. They’re over seven 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.”
According to Ju, primordial BTC whales last made moves on March 28th when Bitcoin rallied to around $47,000. Since then, the top crypto asset by market cap has been in a strong downtrend, losing nearly 60% of its value in just a little over three months.
“But, old whales in general, are still in hibernation for the last two months. For example, over seven-year-old Bitcoins moving took 25% of the total moved coins on March 28th, and the BTC price was $47,000 on that day. They’re quiet since then.”
Ju also says he has his eye on Bitcoin’s Coinbase premium index, which he highlights has recently flipped positive for the first time since April. According to the quant analyst, a positive Coinbase premium chart suggests that institutional investors are scooping up BTC at its current levels.
“This uptick does not indicate a bull run but obviously, it tells us there are institutional buyers in this price range.”
In June, the quant analyst noted that most US-based institutional investors, brokerage firms and market makers (MMs) rely on Coinbase to buy and sell BTC.
He also said that a positive Bitcoin Coinbase premium index would indicate an improving sentiment among deep-pocketed investors.
“Coinbase price premium might be helpful to see recovery from contagion fear. For the past 45 days, MMs at Coinbase have been running trading bots to sell BTC. Their clients are mostly in the US and struggling with liquidity providers’ requests to give back their money.”
At time of writing, Bitcoin is changing hands for $19,204.
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Source: https://dailyhodl.com/2022/07/03/ancient-bitcoin-whales-could-cause-btc-seller-exhaustion-says-quant-analyst-heres-what-it-means/