CryptoQuant CEO Reveals Whales’ Preparations for Crypto Market Growth
CryptoQuant CEO Ki Yong Ju has shared his observations on the steps taken by large investors in preparation for the growth of the crypto market at the end of 2023. According to Ju, whales began opening long positions when Bitcoin (BTC) reached $29,000, marking the start of an accumulation phase that began in early August 2023.
Furthermore, Ju notes that many whales entered the market during a cyclical low when BTC experienced a collapse of the FTX crypto exchange in November 2022. This is evident from the increase in cryptocurrency transfers to derivative trading platforms during that period.
Surge in Whale Activity and Potential Supply-Demand Imbalance
In October 2023, there was a surge in whale activity in the United States, as indicated by markups on the Coinbase premium index and assets on the Chicago Mercantile Exchange (CME).
However, retail investors have yet to enter the market. This could result in a potential supply-demand imbalance, with whales holding onto their coin reserves due to insufficient BTC supply to meet the demand from large investors.
BTC Reaches Yearly High
On December 4-5, 2023, Bitcoin reached a yearly high, trading above $42,000. This marked its highest level since April 2022.
Over the past month, Bitcoin has risen by almost 19%, and since the beginning of 2023, its price has increased by 2.3 times. These price increases are driven by expectations of approval for exchange-traded funds (ETFs) that would allow large institutional investors to directly invest in cryptocurrencies.
Hot Take: Whales Strategize for Crypto Market Growth
The observations of CryptoQuant CEO Ki Yong Ju shed light on the strategic actions of whales in preparation for the growth of the crypto market. These large investors have been carefully opening long positions and accumulating BTC since August 2023. The surge in whale activity in the United States further emphasizes their involvement in the market.
While retail investors have yet to enter, there is a potential supply-demand imbalance, with whales holding onto their coin reserves due to limited BTC supply. The recent price surge, reaching a yearly high, reflects positive market sentiment driven by expectations of ETF approval for institutional investors. As we move forward, it will be interesting to see how these strategic moves by whales shape the future of the crypto market.
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