Bitcoin (BTC) Price Jumps 12% to Reach $96,500, Surpassing the Average Purchase Price of Short-Term Whales

CryptoQuant analyst JA Maartunn told BeInCrypto that these whales have reclaimed their break-even level of $90,890. It means they are now in profit and less likely to sell, which adds stability to the market.

CryptoQuant analyst JA Maartunn has revealed that short-term Bitcoin whales, defined as entities holding the cryptocurrency for less than six months, have finally crossed back into realized profit.

These whales, who collectively purchased top slices of Bitcoin in recent months, had been operating at a loss as Bitcoin struggled to stay above $70,000. However, with Bitcoin’s price jumping over 12% last week to reach $96,500, they have now surpassed their average purchase price.

According to Maartunn’s analysis, short-term Holder Top 20 realized price crossed into profit at around $90,890.

This coincides with the levels where we saw a strong build in hash rate over the past month, and also saw a strong decline in terms of overall realized loss on chain.

As these whales return to profitability, they may reduce selling pressure, which could contribute to greater stability in the market.

Moreover, Maartunn notes that perpetual futures funding rates have remained deeply negative, even as most on-chain indicators suggest a strong bias toward further gains. This disparity suggests that despite the strong technical bias, there is potential for a short squeeze if buying continues.

However, Maartunn believes that with miners steadily rebuilding their accumulation over the past six months, and the network hash rate hitting a record high of 1.04 ZH/s this month, it seems that they are still confident in sustaining the rally.

Furthermore, the world’s largest cryptocurrency is now up 70% from its December 2022 lows, and it recently crossed above the 200-week Exponential Moving Average (EMA) for the first time since November 2021.

In other developments, a new report by eToro has delved into the potential implications of seasonal trends on cryptocurrencies, particularly in the second quarter of 2023.

As summer approaches, seasonal trends may cool the crypto market, which has seen impressive gains this year.

Despite an average second-quarter gain of 26% in Bitcoin since 2013, the median return has been 7.6%, indicating that while gains are typical, they can vary significantly.

Sharp drops, such as the 56.2% plunge in the second quarter of 2022, have also occurred, highlighting the potential for substantial volatility.

In contrast, the third quarter has usually seen weaker performance, with an average return of 6% and a slightly negative median.

This suggests that traders may encounter headwinds as we move into the second half of 2023, especially with May approaching, known for the “sell in May” effect seen in equities.

Since 1950, the S&P 500 has returned only 1.8% from May through October.

In the macro domain, US inflation has now eased to 2.4%, and markets are now pricing in the potential for Fed rate cuts later in 2025.

A weaker dollar usually bodes well for risk assets like Bitcoin.

Finally, in a display of institutional demand for cryptocurrencies, data from Glassnode reveals that spot Bitcoin ETFs saw approximately $3 billion in net inflows by the end of April.