Emily Walker
In 2024, Bitcoin’s price has soared past the $100,000 threshold, marking a significant moment in cryptocurrency history. However, this achievement has sparked discussions about when the market might reach its peak.
Recently, many forecasts regarding the potential peak price of Bitcoin have surfaced within the crypto community. New on-chain data suggests that the market may not yet be close to its high point.
Low Realized Profit Ratio Compared to Earlier Cycles
An analyst known as CryptoOnChain shared insights on the CryptoQuant platform, focusing on whale activity to help speculate about Bitcoin’s market top. He emphasized the importance of the realized profit ratio, which indicates the percentage of investors selling their holdings for a profit.
The realized profit ratio represents the amount of Bitcoin sold at a profit relative to all transactions. A rising ratio typically indicates that the market is nearing its peak, as investors start to cash out. Conversely, a low ratio shows that fewer participants are making profits through sales, indicating strong investor confidence in future price increases.
CryptoOnChain noted that the realized profit ratio for different groups of Bitcoin whales (holding 10 to 100 BTC, 100 to 1,000 BTC, and 1,000 to 10,000 BTC) is significantly lower than in previous market cycles. The accompanying chart suggests that these whales have not yet initiated profit-taking.
This indicates that prominent Bitcoin holders potentially believe that the cryptocurrency has not yet hit its peak. Currently, Bitcoin is trading just under $102,000, with little fluctuation in price over the last day.
Withdrawal of 40,000 BTC from Centralized Exchanges
Additional information reinforces the idea that investors are waiting for even greater profits. Crypto analyst Ali Martinez reported on the X platform about a significant outflow of Bitcoin from centralized exchanges recently. Click here for details.
In the last week alone, over 40,000 BTC, valued at approximately $3.92 billion, have been transferred from exchanges to private wallets. This trend suggests an increasing level of confidence among investors, who appear to be prioritizing long-term gains over immediate profits.