Drawing insights from on-chain data, let’s delve into the current scenario regarding the unrealized profit held by different groups of Bitcoin whales and miners.
Comparing Profits of Bitcoin Whales and Miners Across Different Groups
In a recent article on X, Ki Young Ju, the founder and CEO of CryptoQuant, delved into the analysis of total unrealized profits held by various on-chain cohorts in the Bitcoin market. Ju categorized these cohorts into four distinct groups. Firstly, there are the “short-term holder (STH) whales,” comprising large investors who have acquired at least 1,000 coins in their wallets within the past 155 days. These whales represent entities that have recently entered the market, wielding significant influence due to their large holdings. Conversely, there are “long-term holders” (LTHs), characterized by investors who have held their Bitcoin for more than 155 days. The LTH whales symbolize seasoned participants in the market, known for their steadfastness and experience.
In addition to these investor groups, Ju also examined miner-related cohorts. One group consists of miners holding between 100 and 1,000 BTC, representing smaller-scale miners active on the network. The other group, termed as miner whales, comprises mining companies with holdings exceeding 1,000 BTC. These mining entities wield considerable influence over the Bitcoin network due to their substantial holdings and operational scale.
Ju presented a chart illustrating the trend in the Unrealized Profit Ratio for these four Bitcoin cohorts over the past few years. This ratio provides valuable insights into the profitability of Bitcoin holdings within each cohort and sheds light on the market sentiment and behavior of different participant groups.
The Unrealized Profit Ratio serves as a crucial indicator that delves into the transaction history of the coins held by investors, discerning the price at which these coins were acquired. This metric then calculates the unrealized gains carried by these holders, dividing it by the cohort’s total market capitalization to present the profits as a ratio.
Analyzing the latest data, the chart illustrates a notable surge in the Unrealized Profit Ratio for three of these investor groups amid the recent rally in the market. Presently, this metric stands at 2.23 for the long-term holder (LTH) whales, indicating that they are the most significant beneficiaries in the market, with profits exceeding 223%. This suggests that investors who have demonstrated patience by holding their assets for an extended period are now reaping substantial rewards.
Following closely are the small miners, boasting a profit ratio of 1.31, outperforming the miner whales who stand at 0.81. While the profits of small miners are notably lower than those of LTH whales, they remain substantial, reflecting the profitability of their mining operations amidst the market rally.
Conversely, the short-term holder (STH) whales exhibit a significantly lower Unrealized Profit Ratio, standing at just 0.016. This implies that this group carries a mere 1.6% in profits, highlighting the challenges faced by investors who entered the market more recently. These large entities, often associated with spot exchange-traded funds (ETFs), have had to acquire assets at relatively high prices, resulting in smaller profit margins compared to long-term holders.
In summary, based on the Unrealized Profit Ratio across these Bitcoin cohorts, the CEO of CryptoQuant comments that there is “not enough profit to end this cycle, imo,” indicating that the current market cycle may continue amid ongoing profitability for various investor groups.
Bitcoin Price
The price of Bitcoin is currently hovering around $64,300, maintaining its recent pattern of lateral movement.
It appears that the coin’s price has remained within a range for the past few days.
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