• Bitcoin whales are selling fewer tokens this cycle, potentially leading to historically low profits if the bull run ends soon.  
  • Whales are distributing Bitcoin across smaller wallets to conceal large holdings, with only 1,975 wallets holding 1,000-10,000 BTC.  
  • Futures trading is driving market volatility, while whale activity in spot and OTC markets remains minimal as they await retail investor liquidity.

Bitcoin whales are holding onto their assets as the current bull cycle progresses, signaling a shift in their usual market behavior. According to Ki Young Ju, CEO of CryptoQuant, the whales are selling fewer tokens compared to previous cycles. 

Notably, this cautious approach could have significant implications for the cryptocurrency market, especially if the bull run concludes soon. If this trend continues, Bitcoin whales will likely see lower profits than in past cycles.

If this #Bitcoin bull cycle is done here, whales have just set a record for the least profit-taking across all cycles ever. pic.twitter.com/tx5GCKDnp4

— Ki Young Ju (@ki_young_ju) October 4, 2024

Ali Martinez, a leading crypto analyst on X, observed that Bitcoin whales have started to diversify their holdings. They are breaking down large amounts of Bitcoin into smaller wallets to make their activity less visible. 

Consequently, only 1,975 wallets currently hold between 1,000 and 10,000 BTC, indicating a more cautious approach among major holders. This strategy could reflect their uncertainty about the current market conditions.

Market Volatility Driven by Futures Trading

Meanwhile, Ju pointed out that recent market volatility is largely driven by futures trading, not by whale activity. In previous bull cycles, whales typically moved the market through spot trading or over-the-counter (OTC) transactions. 

However, this time, their involvement in these sectors has been minimal. This shift suggests that retail investors are likely to play a more significant role in driving future market liquidity.

Moreover, this reduced whale activity in spot and OTC trading could reflect their anticipation of increased retail investor participation. By holding back, whales might be waiting for a surge of retail money into the market. If this happens, it could lead to a substantial rise in Bitcoin’s price, reshaping the dynamics of the current bull cycle.

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Whales Await Retail Investor Action

Additionally, the Bitcoin market has seen a noticeable disruption in its usual cycle. Bitcoin’s price surged earlier this year, setting a new all-time high before the halving event, which caught many analysts by surprise. 

Despite this early surge, many analysts believe that the broader bull cycle remains consistent with historical patterns. Analysts suggest that whales are waiting for retail investors to step in and inject liquidity, which could push Bitcoin to new highs.

For now, Bitcoin whales appear content with holding their assets while awaiting further developments. This marks a notable shift in their usual trading behavior, which could have long-term implications for the cryptocurrency market. The next few months could be pivotal in determining the outcome of the 2024 bull cycle.

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