According to CryptoPotato, Bitcoin whales are reportedly cashing in on their profits from the recent Bitcoin rally. On-chain analysts have noticed a significant increase in inflows to centralized cryptocurrency exchanges, with a substantial portion of these inflows coming from Bitcoin whales. This information was revealed in a CryptoQuant Quicktake by anonymous crypto analyst Phi Deltalytics.
On April 25, another analyst, Woominkyu, noted that the unrealized profits of long-term Bitcoin whales had increased significantly, particularly with Bitcoin's value exceeding $60,000. Despite the increase in profits, Woominkyu observed that these whales had not yet cashed out. He pointed out a spot on his chart indicating a significant rise in unrealized profits, suggesting that this group of Bitcoin investors was maintaining their positions. However, he also warned that any move to realize these profits could impact the market.
Approximately 24 hours after Woominkyu's post, Phi Deltalytics reported a notable increase in Bitcoin exchange inflow, with the majority seemingly coming from whales. He suggested that this increase could indicate significant profit-taking by whales during the ongoing 2024 Bitcoin bull run. While he acknowledged that such metrics can sometimes produce false signals, he advised caution when interpreting market dynamics.
In addition to Bitcoin whales, long-term holders of the digital asset have also been cashing out. Woominkyu noted that the Spent Output Profit Ratio (SOPR) of long-term holders had surpassed that of short-term holders over a seven-day moving average, indicating that the former group is realizing more profits. He also explained that the SOPR of long-term holders has generally decreased over time, but there are instances when it experiences an uptick, often preceding spikes in Bitcoin's price. These upticks suggest that long-term investors are capitalizing on price surges to realize profits.
Investors are advised to be cautious of potential price corrections and increased volatility, as the SOPR is currently high. Meanwhile, Bitcoin is consolidating between $60,000 and $70,000. If it rallies to $70,000 and gets rejected, the cryptocurrency could experience a significant slump. At the time of writing, Bitcoin was trading at $64,100, with negligible gains or losses in the past 24 hours.