Based on on-chain data analysis from CryptoQuant, Bitcoin has experienced its third profit-taking wave in the current bullish cycle, prompting inquiries about market future.
Profit Statistics
According to CryptoQuant, realized profits from Bitcoin surged to $6–8 billion in late July, matching previous peaks in March and December 2024. This increase followed Bitcoin's price exceeding $120,000, raising questions about the market's next steps.
Investor Behavior
Large holders of cryptocurrency, known as whales, had a significant impact on the market during this wave of selling. They can greatly influence market dynamics through their large transactions. Research indicates that such moves often precede market corrections. Monitoring whale movements can provide early signals about potential changes.
Potential Market Impacts
As institutional participation grows, understanding the behavior of large holders provides essential insights into current market trends. It remains unclear whether this wave marks the beginning of a market correction or a consolidation phase. However, increased selling pressure may indicate the end of a bullish phase.
Keeping track of large investors' behaviors and analyzing the realized profit statistics are crucial for understanding potential changes in the cryptocurrency market. These factors could provide foresight into crucial price movements for Bitcoin.
