Ki Young Ju highlights Bitcoin whale activity behind market drawdown
Ki Young Ju highlights Bitcoin whale activity
The cryptocurrency market has shown signs of recovery as Bitcoin (BTC) surged 2.95% in the past 24 hours to $96,783.31.
However, the upward momentum faces challenges as old Bitcoin whales continue to sell off large amounts of BTC via over-the-counter (OTC) desks and exchange deposits, says CryptoQuant CEO Ki Young Ju, according to Coingape.
Whale Activity and Market Impacts
In a statement shared on social media, Ki Young Ju attributed the recent sell pressure to seasoned Bitcoin holders liquidating their positions through OTC channels. Despite these transactions, he reassured that the overall market structure remains stable and unlikely to crash under current conditions.
The United States remains a pivotal source of Bitcoin’s buying pressure. However, a key metric—the Coinbase Premium, which measures the difference in BTC prices on Coinbase versus other exchanges—has hit a two-year low.
This decline signals reduced interest from institutional investors, traditionally a driving force in Bitcoin’s price growth. Ki emphasized that a recovery in the Coinbase Premium is essential for Bitcoin to achieve its next bullish phase.
Altcoins on the Rise
While Bitcoin remains the cornerstone of the cryptocurrency market, altcoins are gaining ground. Binance Coin (BNB), Solana (SOL), and XRP have posted significant gains, with XRP reclaiming its position as the third-largest cryptocurrency, surpassing Tether.
This shift has sparked discussions of an impending "altcoin season," during which alternative cryptocurrencies may outpace Bitcoin in performance.
As the market navigates a complex mix of whale activity, institutional interest, and emerging altcoin dominance, the coming weeks will be critical in determining whether Bitcoin maintains its recovery trajectory or yields further ground to its competitors.
Bitcoin saw significant volatility in late 2024, dipping to a five-week low of $91,500 before rebounding to $94,500 on December 31. Its resilience is fueled by market reactions and institutional backing, including BlackRock's push into Bitcoin ETFs.
