CryptoQuant CEO Ki Young Ju believes that big players like traditional finance institutions, companies, and governments are quietly buying up Bitcoin. He’s seen a huge increase in Bitcoin being moved to “permanent holder” addresses, which are basically wallets that are unlikely to sell their coins anytime soon.
What’s the evidence?
- Bitcoin is being accumulated: Over the past month, over 400,000 Bitcoin have been moved to permanent holder addresses. This includes a significant amount bought through US spot ETFs.
- Miners are holding strong: Bitcoin miners are recovering from a recent downturn and are likely to keep mining as long as the price stays above a certain level.
- Retail investors are out: Most small investors are staying away from Bitcoin right now, similar to what happened in 2020.
- Old whales are out of the game:
Big investors who have held Bitcoin for a long time have been selling to newer investors, and there’s no sign of them selling off more right now.
But there are some risks:
- Macroeconomic worries: Things like inflation and interest rates could cause Bitcoin to drop.
- Bearish signals: Some on-chain indicators are showing signs of a potential downturn, but it’s too early to say for sure.
What does this mean for you?
Young Ju thinks that within a year, these big players will announce their Bitcoin holdings, and retail investors who didn’t buy during this dip will regret it. However, it’s important to remember that this is just one expert’s opinion, and the market can be unpredictable. Do your own research and invest responsibly.
