Has Record Bitcoin Inflow Fueled Short-Term Whale Profits?

Has Historic Bitcoin Inflow Fueled Short-Term Whale Profits?

CryptoQuant founder Ki Young Ju asserts that the unprecedented inflow of funds into Bitcoin is driving the profitability of short-term whales, including spot Bitcoin exchange-traded fund (ETF) buyers. According to on-chain data, these investors have accumulated an unrealized profit of approximately $16.3 billion, representing a 16% gain.

Bitcoin's Bullish Rebound: A Turning Point?

Just 24 hours after breaching the $70,000 mark, Bitcoin extended its weekend gains, rising sharply above the $69,000 resistance level. On March 16, BTC traded above the middle BB, a technical indicator that signals support or resistance based on the price trend. The analyst suggests that further extension on March 25 could push the coin above $73,800.

Spot Bitcoin ETFs: Shaping Price Momentum

Spot Bitcoin ETFs have exerted a significant influence on the coin's price action. Rumors of their approval by the Securities and Exchange Commission (SEC) in mid-January 2024 spurred a price rally to $47,200. Post-approval, prices initially contracted before soaring to new all-time highs in early March 2024.

Unprecedented Demand for Bitcoin ETFs

The total assets under management (AUM) of spot Bitcoin ETFs have surged to $60 billion within just ten weeks, a milestone that took Gold ETFs approximately 15 years to achieve. This rapid growth indicates a surging demand for Bitcoin exposure from various market participants, including institutions.

Inflows Drive Price Rebound, but Cracks Emerge

While spot Bitcoin ETFs continue to influence price action, cracks are starting to appear. The coin recently experienced five consecutive days of outflows, the second time in its history. Increased outflows coincided with a decline in Bitcoin prices to $63,500. However, this trend reversed on March 25, with Fidelity's FBTC leading the rebound.

Sustained Inflows Could Fuel Further Price Recovery

The analyst anticipates that if spot Bitcoin ETF issuers continue to attract capital, reversing the outflows seen last week, prices are likely to recover. However, it remains to be determined whether Bitcoin can surpass $74,000 before the next halving event.