CryptoQuant Founder: Market Volatility Driven by Futures

Understanding the Impact of Market Volatility on Bitcoin

In a recent commentary on the X platform, Ki Young Ju, the founder of CryptoQuant, shed light on the current fluctuations in the cryptocurrency market. He noted that the ongoing volatility is significantly influenced by the futures market, which has become a battleground for traders and investors alike.

The Role of Whales in Bitcoin Trading

According to Ki Young Ju, real whales—those large investors holding significant amounts of Bitcoin—are actively steering Bitcoin's price. They are primarily doing this through spot trading and the over-the-counter (OTC) market. The insights drawn from on-chain data are becoming increasingly crucial for understanding these market dynamics.

Current Profits and Market Sentiment

Despite the recent surge in Bitcoin’s price, diamond-handed whales have not yet realized substantial gains. Many of these whales, who entered the market during the bullish run, have seen minimal profits. This hesitancy to sell is largely due to the anticipation of retail investor liquidity—the funds from smaller investors—flooding into the market.

The Rise of New Whale Addresses

Interestingly, there has been an unprecedented accumulation of Bitcoin by new whale addresses. This trend indicates a growing interest among large-scale investors, which the market has never seen before.

ETF Inflows vs. New Whales

There is speculation that these new whale investors might be influenced by ETF inflows into Bitcoin. However, recent accumulation patterns suggest that the actions of these new whales may not closely correlate with ETF movements. This disconnect raises questions about the overall sources of demand for Bitcoin in the current market.

Conclusion

The current landscape of Bitcoin trading is complex, shaped by the movements of whales and the dynamics of both spot trading and the futures market. As these trends evolve, keeping an eye on on-chain data will be essential for understanding the market's direction.