Based on on-chain data, here is how much unrealized profit the various groups of bitcoin miners and whales have right now.
Comparison of earnings of whales and bitcoin miners between cohorts
in a new twitter.com/ki_young_ju/status/1781231607040381046″ target=”_blank” rel=”noopener nofollow”>mail In
Ju has spoken of four groups. First are the “short-term possessing whales (STH)”. Whales are generally defined as investors who carry at least 1000 coins in their wallets, while STHs refer to investors who purchased their coins in the last 155 days.
Thus, STH whales would be the large entities that have recently entered the market. Like STHs, there are also “long-term holders” (LTHs) that have been in possession for more than 155 days. The LTH whales, therefore, would represent the large veteran hands of the market.
The other two groups of interest here are related to miners: miners carrying between 100 and 1000 btc and mining whales (1000 btc+, again). The first would represent the small miners of the network, while the second would be the mining companies.
Now, here is the chart shared by the founder of CryptoQuant showing the trend in the unrealized profit rate for these four bitcoin cohorts over the past few years:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/04/What-profits-do-whales-and-Bitcoin-miners-make.jpeg" alt="bitcoin Unrealized Profit Ratio” width=”1878″ height=”1250″/>
The unrealized profits held by these four on-chain groups | Source: twitter.com/ki_young_ju/status/1781231607040381046/photo/1" target="_blank" rel="noopener nofollow">@ki_young_ju on x
The unrealized profit ratio here is an indicator that walks through the trading history of the coins these investors are holding to see what price they purchased those coins at.
Based on this, it calculates what unrealized profits these holders have and divides them by the total market capitalization of the cohort to generate the profits as a ratio.
The chart shows that the unrealized gains rate has spiked for three of these groups as the latest rally occurred. The metric is now at 2.23 for LTH whales, 1.31 for small miners, and 0.81 for mining companies.
This means that LTH whales are the top earners in the market, with over 223% of the profits. This suggests that these investors, who have held their positions for a relatively long time, have been rewarded for their patience.
Small miners are the next big winners, with 131% profits, surpassing the 81% profits of mining whales. While these profits are significantly less than those of LTH whales, they are still substantial.
However, for STH whales, the unrealized profit ratio is only 0.016, implying that this group makes only 1.6% profit. These investors correspond to the big money that has come in through spot exchange-traded funds (ETFs) over the past few months.
These large entities have had to buy at relatively high prices, so their breakeven point is much higher than that of LTHs, and therefore their profits are also much lower.
Overall, based on the unrealized profit rate for these bitcoin cohorts, the CryptoQuant CEO comments, “there are not enough profits to end this cycle, in my opinion.”
btc Price
bitcoin is currently floating around the $64,300 level as the asset continues its recent sideways movement trend.
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Looks like the price of the coin has continued to be stuck inside a range over the last few days | Source: BTCUSD on TradingView
Featured image from iStock.com, CryptoQuant.com, TradingView.com chart
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