CryptoQuant CEO Ki Yong Ju recently shed light on how whale investors, the major players in the cryptocurrency market, have been preparing for significant market changes. This comes amid the recent growth observed in the crypto market towards the end of 2023.
Whales and the Accumulation Phase
Ju pointed out that whales began to open most of their long positions when Bitcoin (BTC) hit the $29,000 mark. This accumulation phase reportedly started in early August 2023. He also noted the significant entry of whales into the market following the FTX crypto exchange collapse in November 2022, marked by increased cryptocurrency transfers to derivative trading platforms.
Whale Activity Surge in the United States
A notable surge in whale activity was observed in the United States in October 2023. This was evidenced by increased markups on the Coinbase premium index and assets on the Chicago Mercantile Exchange (CME).
Retail Investors and Market Supply
Despite these movements, retail investors have seemingly remained on the sidelines. Ju suggests that in such a scenario, the supply of BTC might struggle to meet the demand from these large investors, implying that whales are likely to hold onto their coin reserves.
Recent Market Highs
As of December 4-5, BTC reached a yearly high, trading above $42,000, its highest level since April 2022. Over the past month, Bitcoin’s value has increased by nearly 19%, and since the beginning of 2023, its price has more than doubled. This surge is largely attributed to expectations of U.S. approval for exchange-traded funds (ETFs) allowing direct investment in cryptocurrencies by large institutional investors.
Ki Yong Ju’s insights offer a unique glimpse into the strategies employed by whale investors in the cryptocurrency market. As the market continues to evolve, understanding these tactics becomes crucial for both investors and analysts alike.