New Surge in Bitcoin Ownership as Whales Accumulate

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According to King Young, CEO of CryptoQuant, new Bitcoin whales now control approximately 9% of the circulating supply, translating to about 1.8 million *BTC*, including those held through spot ETFs. 

Despite the increase in holdings by Bitcoin whales, analysts at CryptoQuant express concerns over the potential for further price corrections. The market’s current state shows signs of overheating, with many investors anticipating quick recoveries and further price increases. This optimistic sentiment, however, could lead to volatility due to several underlying factors.

Bitcoin’s Volatility Index

The Bitcoin market is experiencing several volatility indicators that could influence future price movements. The average 30-day funding rates are elevated, similar to the peaks seen in 2021, creating a costly environment for those betting against the market. Additionally, Bitcoin faces unprecedented resistance at its all-time high prices, presenting a significant barrier to upward movements. Furthermore, the market’s trading patterns are characterized by a defined channel with approximately 20% expansion and retraction, providing an ideal setup for large investors to establish significant positions, which could lead to sharp fluctuations in price.

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For the first time in three years, the flow of investments from retail investors has not exceeded mid-range values. This indicates a reduced presence of these smaller investors in the market, aligning with historical patterns where large retail sell-offs often precede market tops. Following the recent sharp decline in Bitcoin prices, there has been a noticeable withdrawal by retail investors, pointing to a possible shift in market dynamics.

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