The uncertainty throughout the market and the bearish wave of sales with high liquidations do not seem to be over yet. And now, the new Bitcoin whales will likely take volatility a step further.
CryptoQuant CEO Ki Young Ju shared the unrealized profit ratio chart for new Bitcoin whales, which have just entered the loss zone, in an X post on Tuesday, October 14.
According to the data, new Bitcoin whales have begun to see unrealized losses as the asset plummeted from its all-time high of $126,198. “Volatility is coming,” Young Ju wrote.
The CryptoQuant CEO stated that the indicator cannot predict the next market move. In June and July 2021, the red index of unrealized profits for new Bitcoin whales triggered further accumulation, pushing the price of BTC above an ATH of $68,000.
In February 2022, Bitcoin and the broader crypto market experienced a sharp sell-off after the indicator plunged.
Bitcoin has been on a downward spiral amid expectations of high volatility. BTC fell to $111,569 today, October 14.
The liquidation comes as US-based BTC spot exchange-traded funds recorded a net outflow of $326.4 million on October 13, according to data from Farside Investors. Outflows came mainly from GBTC, BITB and FBTC, while BlackRock’s IBIT recorded an inflow of $60.4 million.
Last week, BTC-based investment products generated a net inflow of $2.71 billion.
Ethereum spot ETFs recorded a deeper net outflow of $428.5 million, led by the $310.1 million liquidation of ETHA. ETH also fell 4% to $3,990.
On October 12, Binance recorded a USDT inflow of approximately $1.4 billion, finally bringing bullish momentum to the market. However, in the last 24 hours, the largest crypto exchange recorded a net outflow of just over 190 million USDT, according to data from CoinGlass.
When stablecoins leave centralized exchanges, it usually means that market participants are experiencing fear, uncertainty, and doubt. Consequently, negative sentiment would lead to market-wide sell-offs.
Read original story New Bitcoin whales are ‘underwater’: Analyst expects high volatility by Wahid Pessarlay on Coinspeaker.com