In 2024, the Bitcoin price made history by surpassing the $100,000 mark for the first time ever. This milestone sparked discussions about when the market will reach its peak. Various predictions have emerged from the crypto community, with some suggesting that the market may not have peaked or may not be close to it yet.
One key indicator being monitored is the realized profit ratio, which measures the proportion of coins sold at a profit relative to the total volume of transactions. A high realized profit ratio typically indicates that the market is nearing its peak as investors start to sell their assets for profit. Conversely, a low realized profit ratio suggests that fewer investors are selling their holdings for profit, indicating sustained investor confidence in the cryptocurrency’s future price growth.
According to CryptoOnChain, a pseudonymous analyst on the CryptoQuant platform, the realized profit ratio for different cohorts of Bitcoin whales (holders of 10 to 100, 100 to 1,000, and 1,000 to 10,000 BTC) is lower compared to previous cycles. This suggests that influential market entities, such as whales, believe that Bitcoin has not yet reached its peak in the current cycle. The Bitcoin price at the time of writing is just below $102,000, showing no significant change in the past 24 hours.
Another data point supporting the idea that investors are waiting for higher gains is the movement of over 40,000 BTC (worth approximately $3.92 billion) out of centralized exchanges in the past week. This shift to non-custodial wallets indicates growing investor confidence in the long-term potential of Bitcoin, prioritizing future gains over short-term profits.
Overall, the current market indicators and whale behavior suggest that Bitcoin may still have room for growth before reaching its peak. Investors and analysts continue to monitor various metrics to gauge the market’s trajectory and anticipate future price movements. The journey to the top of the market remains uncertain, but the resilience and confidence in Bitcoin’s potential continue to drive optimism among market participants.
