The price of Bitcoin has experienced a complex journey throughout 2024. Despite an initially strong performance at the beginning of the year, the leading cryptocurrency has mostly oscillated within a range of $50,000 to $70,000 over the last two quarters. This period of consolidation has prompted widespread discussions about the ongoing cycle, with numerous analysts and experts weighing in on whether the bull run persists.
Insights from the CryptoQuant CEO on the Bitcoin Cycle
One of the notable voices in this conversation is the CEO of CryptoQuant, who has offered valuable on-chain insights into the current Bitcoin cycle. In a recent analysis, he shed light on the behavior of Bitcoin whales, who have shown a tendency to retain their assets during this cycle. This behavior is quite significant as it marks a record for minimal profit-taking compared to previous cycles, assuming the current bull run concludes at this point.
Understanding Whale Behavior Through On-Chain Metrics
The insights are derived from the Realized Profit Ratio by Balance Cohort metric. This metric evaluates the proportion of coins sold at a profit by a particular investor class relative to the overall coins sold at any given time. Essentially, it assesses the profitability levels among various cohorts of Bitcoin holders.
Ordinarily, a high Realized Profit Ratio among whales signals a potential sell-off, as it suggests large investors believe the prices have peaked. Conversely, a low Realized Profit Ratio indicates minimal profit-taking, suggesting that investors are either not incurring losses or are optimistic about future price increases. The current data highlights a trend where significant holders have taken fewer profits than in previous bull cycles. This behavior could indicate that Bitcoin whales remain confident in the long-term potential of Bitcoin, suggesting that the current bull run may have more room to grow.
The Rise of Bitcoin ‘Dolphin’ Addresses: A Positive Indicator
In addition to whale activity, the growth of Bitcoin’s “Dolphin” cohort has garnered attention. According to a report by Santiment, investors holding between 0.1 to 10 BTC have been steadily increasing their holdings over recent months. Notably, this group had largely sold for profit during the first half of the year.
Renewed Interest Among Small-Scale Investors
Since early July, there has been a significant uptick in addresses holding between 0.1 and 10 BTC. Specifically, wallets containing 0.1 to 1 BTC have grown by 25,671 addresses, while those holding 1 to 10 BTC have increased by approximately 4,000 addresses. This resurgence in small-scale investor activity could signal a positive trend for Bitcoin’s price trajectory in the coming months.
As of now, Bitcoin is valued at $61,940, representing a 1.7% increase in the past 24 hours. This upward trend underscores the growing optimism among both large and small investors, suggesting a potentially brighter outlook for Bitcoin’s performance in the near future.
