Whale Activity Shapes Bitcoin’s Future as Retail Steps Aside

TL;DT

• Ki Young Ju stated that the current Bitcoin market does not represent a speculative bubble, but rather an upward trend supported by on-chain data.
• Ju emphasized the prominence of whales in the market, while retail investors gradually withdraw, transforming the dynamics of accumulation and prices.
• He pointed out the possibility of corrections of up to 30%, followed by rapid recoveries, with the peak of the bullish cycle still distant according to the MVRV analysis.

CryptoQuant CEO Ki Young Ju shared his analysis of the current state of the Bitcoin market. He highlighted that despite the interest in the asset, the market is not in a speculative bubble. According to his assessment, the behavior of large investors, known as “whales,” and blockchain data indicate a solid and grounded upward trend.

Ju explained that, in previous years, large-scale Bitcoin acquisitions by whales used to shake the market. However, today, this phenomenon has become routine, signaling a gradual withdrawal of retail investors. This change in the market dynamic has led major investors to assume a leading role in determining price trends.

New Dynamics in the Bitcoin Market

Regarding the possibility of a bubble, Ju emphasized that such a scenario occurs when the market price significantly exceeds the capital flow entering the ecosystem, a situation that, according to data, is not occurring at the moment. On-chain records show that approximately $7 billion is entering the Bitcoin market weekly, a figure that supports current prices and reinforces market stability.

The analysis also included projections about potential corrections. Ju acknowledged that a price drop could be plausible, but he stated that it is unlikely to exceed 30% and, if it happens, it would be temporary. Moreover, he anticipates a quick and consistent recovery, with potential increases of over 30% following the correction. From his perspective, the peak of this bullish cycle is still far off, casting doubt on predictions of a bearish market in the short term.

Healthy Growth Zone

To support his claims, Ju presented a chart based on the MVRV (Market Value to Realized Value) indicator, adjusted to exclude coins inactive for more than seven years. This indicator suggests that the market is in a healthy growth zone. With a current MVRV of 1.8, Bitcoin’s price is above the average but far from critical levels that would indicate overvaluation.

Ju supports the idea that the current Bitcoin bull market is in a solid position, driven by a constant flow of capital and strategic accumulation by whales. In other words, it is an expanding market rather than a speculative cycle, a crucial factor in strengthening user confidence

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