Bitcoin Short-Term Whales Hold $10.1B in Unrealized Gains
Bitcoin's recent rise to record levels has resulted in short-term holder (STH) whales sitting on paper profits of about $10.1 billion, as per CryptoQuant data.
- These holders own over 1,000 BTC and entered the market within the last five months.
- The current profit is the highest for this cycle, showing rapid shifts in fortunes. Earlier, STHs were at a loss due to September's dip.
- The rise is attributed to ETF inflows, U.S. shutdown backdrop, and softer dollar conditions.
However, STH whales are known for taking profits quickly:
- This week, $5.7 billion moved from STH wallets to exchanges, indicating active profit-taking.
- 3.45 million BTC have shifted from long-term holders (LTHs) to STHs, comparable to the 2016-17 transfer wave but at significantly higher prices.
The impact on momentum will depend on demand in the coming weeks. Current conditions might absorb some selling pressure, but significant sell-offs could turn unrealized gains into realized market pressure rapidly.