Bitcoin Slump Pushes New Whales Underwater: A Rare Opportunity To Buy?
02 Mai 2024 - 9:00PM
NEWSBTC
As Bitcoin slumps, on-chain data by Ki Young Ju, the founder of the
blockchain analytics platform CryptoQuant, paints a stark picture:
all new whales, including holders of spot exchange-traded funds
(ETFs), are now underwater. New Whales And Spot ETF Investors
Are In Red Taking to X, Ju said that more losses would be
incoming, predicting that HODLers will find “max pain” at around
$51,000. The dip is less than $10,000 from spot rates, suggesting
that although there are cracks, the correction might not
be deep. Related Reading: Whales Dive In, But Dogecoin Price
Sinks 20%: What’s Going On? This overview is welcomed, considering
the recent sell-off. Even so, predicting price bottoms in a
fast-moving market influenced by multiple forces is tough. As price
action stands, Ju says believers may take the opportunity to double
down on the coin. The founder adds that the current price discount
presents an opportunity for savvy investors to outperform
traditional finance whales, including institutions with BTC
exposure via spot ETFs in the United States. Bitcoin is under
immense liquidation pressure at the time of this writing. Though
bulls soaked up the sell-off earlier today, the coin remains within
a bearish breakout. Prices are trading below the support zone of
between $60,000 and $61,000 and below April 2024. Inflow To Spot
Bitcoin ETFs Decline As Sentiment Deteriorate This formation
suggests that though bulls are optimistic, the path of least
resistance remains southwards for now. BTC dropped after posting
impressive returns from October 2023 to March 2024, when prices
peaked. Some analysts think the current cool-off is inevitable
following sharp gains in the last six months. The fact that whales
are underwater was unexpected, considering the state of affairs in
the last week of April. Then, the inflow from new whales nearly
doubled the cumulative holdings of older whales. Analysts said
this influx of fresh capital pointed to growing institutional
interest. However, looking at the current price action, new whales
are now in the red territory, and their excitement seems to
wane. Related Reading: Bitcoin Bull Run Over? Analyst
Predicts What To Expect Now According to Lookonchain data,
inflow into the eight-spot Bitcoin ETFs, including BlackRock, has
stalled. On May 1, all issuers, including Grayscale via GBTC,
decreased by 1,950 BTC. Of note is that BlackRock’s IBIT has not
seen inflows for five straight days. Still, confidence abounds.
Inflows into spot Bitcoin ETFs are highly influenced by
sentiment, which rests on how prices perform. If BTC shakes
off the current weakness and tears higher in the expected
post-Halving rally, spot ETF issuers will begin receiving new
inflows. Feature image from DALLE, chart from TradingView
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