Ki Young Ju, the founder of CryptoQuant, a cryptanalysis platform, now says The historic influx into bitcoin is the main driver of returns among short-term whales, including buyers of spot bitcoin exchange-traded funds (ETFs).
Referring to on-chain data, the founder notes that these investors have accumulated approximately $16.3 billion in unrealized profits, which translates to a gain of around 16%.
<img decoding="async" class="size-full wp-image-289737" src="https://technicalterrence.com/wp-content/uploads/2024/03/Bitcoin-Whale-Profits-Soar-to-163-Billion-Despite-Mixed-BTC.jpg" alt="Investor returns on spot ETFs and btc whales | Source: Founder of CryptoQuant at X” width=”1024″ height=”600″ srcset=”https://technicalterrence.com/wp-content/uploads/2024/03/Bitcoin-Whale-Profits-Soar-to-163-Billion-Despite-Mixed-BTC.jpg?w=1962 1962w, https://technicalterrence.com/wp-content/uploads/2024/03/Bitcoin-Whale-Profits-Soar-to-163-Billion-Despite-Mixed-BTC.jpg?w=640 640w, https://technicalterrence.com/wp-content/uploads/2024/03/Bitcoin-Whale-Profits-Soar-to-163-Billion-Despite-Mixed-BTC.jpg?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/03/Bitcoin-Whale-Profits-Soar-to-163-Billion-Despite-Mixed-BTC.jpg?w=980 980w, https://technicalterrence.com/wp-content/uploads/2024/03/Bitcoin-Whale-Profits-Soar-to-163-Billion-Despite-Mixed-BTC.jpg?w=1536 1536w, https://technicalterrence.com/wp-content/uploads/2024/03/Bitcoin-Whale-Profits-Soar-to-163-Billion-Despite-Mixed-BTC.jpg?w=750 750w, https://technicalterrence.com/wp-content/uploads/2024/03/Bitcoin-Whale-Profits-Soar-to-163-Billion-Despite-Mixed-BTC.jpg?w=1140 1140w” sizes=”(max-width: 1000px) 100vw, 1000px” data-recalc-dims=”1″/>Investor returns on spot ETFs and btc whales | Source: Founder of CryptoQuant at X
The revelation comes about a day after the world's most valuable currency surged back above $70,000, extending gains over the weekend. After a series of lows threatened to wipe out gains, the coin rose sharply over the weekend, surpassing the $69,000 resistance level.
As of writing on March 16, btc is trading above the mid-BB, a dynamic price level that chartists use to mark resistance or support, depending on the trend. The March 25 extension could also spur further demand, lifting the coin above $73,800 and into new territory.
bitcoin spot ETFs continue to shape the currency's price action. Even before its approval in mid-January 2024, rumors of its green light from the strict United States Securities and Exchange Commission (SEC) drove up prices.
The coin rose above $40,000, reaching highs of around $47,200 on January 8. After approval, prices contracted briefly before skyrocketing, posting new all-time highs in early March 2024.
Interest in spot bitcoin ETFs has seen their total assets under management (AUM) rise to $60 billion in about ten weeks. It took gold ETFs about 15 years to reach the same milestone. This rally points to increased demand, possibly from other players and institutions seeking exposure to the asset.
<img loading="lazy" decoding="async" class="size-full wp-image-289738" src="https://technicalterrence.com/wp-content/uploads/2024/03/1711466129_327_Bitcoin-Whale-Profits-Soar-to-163-Billion-Despite-Mixed-BTC.jpg" alt="Gold ETF AUM vs. bitcoin | Source: X Analyst” width=”748″ height=”389″ srcset=”https://technicalterrence.com/wp-content/uploads/2024/03/1711466129_327_Bitcoin-Whale-Profits-Soar-to-163-Billion-Despite-Mixed-BTC.jpg?w=748 748w, https://technicalterrence.com/wp-content/uploads/2024/03/1711466129_327_Bitcoin-Whale-Profits-Soar-to-163-Billion-Despite-Mixed-BTC.jpg?w=640 640w” sizes=”(max-width: 748px) 100vw, 748px” data-recalc-dims=”1″/>Gold ETF AUM vs. bitcoin | Source: X Analyst
Still, while bitcoin spot ETFs shape the price action, cracks are starting to emerge. Last week marked the second time in the currency's history that five consecutive days of outflows were recorded. The increase in outflows coincided with the decline in bitcoin prices, falling to $63,500. However, this trend ended on March 25, with Fidelity's FBTC leading the rally.
For now, it remains to be seen whether capital inflows will accelerate in the coming sessions. If more capital flows into bitcoin ETF issuers, reversing last week's impact, it is highly likely that prices will recover as well. Still, it is unclear whether the coin will surpass $74,000 before bitcoin halving.
