Bitcoin price recently diverged from a crucial support level and fell below $20,000. Significant concerns about inflation and rate hikes signaled by central banks, particularly the US Federal Reserve, led to the halving in value of BTC over the past month.
Amid the ongoing crypto crisis, a popular quantitative analyst says he is closely watching the behavior of former Bitcoin whales as the investment group may force sellers to run out of supply.
Ancient BTC Whales Always within reach
Ki Young Ju, the CEO of CryptoQuant, reveals that despite the royal cryptocurrency’s dramatic decline over the past few months, former Bitcoin whales, or entities that have held their big BTC stacks for more than seven years, are still going strong. sleep.
The old Bitcoin whales are still silent in this zone and the realized price of $358 is still 54x even though they are over seven years old. Most newcomers, including institutions and minors, are currently overwhelmed. Until the elders supply BTC, the sell-side supply in the market would be low.
He says the first Bitcoin whales were last traded when Bitcoin soared to nearly $47,000 on March 28. Since then, the most valuable cryptocurrency has seen a steep decline, losing around 60% of its value in just over three months.
Ju also mentions that he is keeping tabs on the Coinbase premium index for Bitcoin, which he says recently turned positive for the first time since April. The quantitative analyst believes that institutional investors are snapping up BTC at its current levels due to a strong premium Coinbase chart.
The quantitative analyst pointed out in June that the majority of US-based institutional investors, brokerages, and market makers (MMs) use Coinbase to buy and sell Bitcoin. Additionally, he said a rising mood among wealthy investors will be indicated by a rising Bitcoin Coinbase Premium Index.