Recent information from Glassnode indicates that new purchasers, who have retained their assets for 24 hours to three months, now control 50% of the market’s worth.
This statistic narrates a significant tale about the present condition of the crypto market, particularly as Bitcoin oscillates near $100,000. The leading cryptocurrency saw substantial price variations, rising above $105,000 on Sunday, falling below $98,000 on Monday, and then climbing by 2.04% on Tuesday.
New Whales Create Ripples In The Cryptocurrency Sea
Since mid-2024, the emergence of new Bitcoin whales (refer to the CryptoQuant graph below) has drastically altered the market environment. These heavyweight investors, characterized as entities possessing more than 1,000 BTC for less than 155 days, have augmented their market share from 17% in July 2024 to 60%.
This growth in whale accumulation, which transpired while Bitcoin was priced at $55,000, showcases strong institutional confidence despite market fluctuations.
At 50.2%, the share of wealth held by new #Bitcoin investors (24H to 3 months), remains significantly lower than the levels recorded during prior ATH cycle peaks:
🔺2018 peak: 85%🔺2021 peak: 74%https://t.co/hkTSpFVAPG pic.twitter.com/6gcOgIIlvM
— glassnode (@glassnode) January 28, 2025
Historical Trends Suggest Potential Upside
<pToday’s more modest 50.2% number implies significant room for expansion before aligning with historical trends. The Realized Cap HODL Waves metric bolsters this perspective, indicating that current accumulation levels are relatively conservative in comparison to earlier bull markets.
Market Structure Reveals Unexpected Resilience
Essential Support Levels Shape Trading Strategy
#Bitcoin $BTC faced rejection at the upper red pricing band at $109,400. Failing to reclaim this level shifts focus to the next crucial support at the orange MVRV pricing band, currently positioned at $91,700. pic.twitter.com/h0EgU11fWO
— Ali (@ali_charts) January 28, 2025
One distinct characteristic of the current market phase is its short-term volatility; Bitcoin experiences notable profits and losses rapidly in succession.
Featured image from Pexels, chart from TradingView
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