New Bitcoin Whales Are ‘Underwater’: Analyst Expects High Volatility

1 hour ago by · 2 mins read

The analyst expects high volatility for Bitcoin, which can, consequently, impact the broader market, as new Bitcoin whales see the red zone.

The market-wide uncertainty and bearish selloff with high liquidations doesn’t seem to be over yet. And now, new Bitcoin BTC $111 232 24h volatility: 3.4% Market cap: $2.22 T Vol. 24h: $73.53 B whales will likely take the volatility a step further.

CryptoQuant CEO Ki Young Ju shared the unrealized profit ratio chart for new Bitcoin whales, which just turned into the loss zone, in an X post on Tuesday, Oct. 14.

According to the data, new Bitcoin whales have started to see unrealized losses as the asset plunged from its all-time high of $126,198. “Volatility is coming,” Young Ju wrote.

The CryptoQuant CEO claimed that the indicator can’t predict the next market movement. In June and July 2021, the red unrealized profit ratio for new Bitcoin whales triggered stronger accumulation, which pushed BTC price above an ATH of $68,000.

In February 2022, Bitcoin and the broader crypto market saw a strong selloff after the indicator went “underwater.”

Uptober Turned into Octobear

Bitcoin has been on a downward spiral amid expectations of high volatility. BTC dropped to $111,569 earlier today, Oct. 14.

The selloff comes as the US-based spot BTC exchange-traded funds recorded a net outflow of $326.4 million on Oct. 13, according to data from Farside Investors. The outflows majorly came from GBTC, BITB, and FBTC while BlackRock’s IBIT saw an inflow of $60.4 million.

Last week, the BTC-based investment products brought a net inflow of $2.71 billion.

Spot Ethereum ETH $3 977 24h volatility: 4.4% Market cap: $480.93 B Vol. 24h: $52.25 B ETFs registered a deeper net outflow of $428.5 million, led by ETHA’s $310.1 million selloff. ETH also dropped 4% to $3,990.

On Oct. 12, Binance saw a USDT USDT $1.00 24h volatility: 0.0% Market cap: $180.20 B Vol. 24h: $152.75 B inflow of roughly $1.4 billion, which eventually brought bullish momentum to the market. Over the past 24 hours, however, the largest crypto exchange saw a net outflow of just over 190 million USDT, according to CoinGlass data.

When stablecoins leave centralized exchanges, it usually means that market participants are experiencing fear, uncertainty, and doubt. The negative sentiment would, consequently, lead to market-wide selloffs.

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