Bitcoin Market Dynamics: Insights from On-Chain Data

According to BlockBeats, CryptoQuant CEO Ki Young Ju has shared insights based on recent on-chain data regarding Bitcoin. The unrealized profits of Bitcoin whales are not excessively high, suggesting either that market hype has not yet peaked, or that the market's size now limits high profit margins. Bitcoin's hash rate continues to reach new heights, with approximately 5.96 million ASIC miners online. Publicly listed mining companies are expanding rather than downsizing, indicating a long-term bullish trend. Current demand is primarily driven by ETFs and MicroStrategy, though recent buying activity from these channels has slowed. A resurgence in their growth could potentially revive market momentum. In the past six months, short-term whales, mainly ETFs, are near the breakeven point, while long-term whales have realized profits of about 53%. Historically, the market has exhibited clear four-year cyclical fluctuations, with accumulation and distribution between retail and whale investors. However, predicting new liquidity inflows has become more challenging, making it unlikely for Bitcoin to follow the same cyclical pattern again. The average cost of Bitcoin wallets stands at $55,900, indicating an average profit of approximately 93% for holders. The realized market cap has risen by $8 billion this week, reflecting strong on-chain capital inflows. The price increase is attributed to weak demand rather than selling pressure.