CryptoQuant, a company that provides on-chain market information and analysis for cryptocurrencies, has released an analysis of Bitcoin's current state and outlook.
CryptoQuant: "Bitcoin Needs Whale Investors to Coming Bull"
According to CryptoQuant, Bitcoin is still in the recovery phase after exiting the oversold phase, but it will take some more time to reach the bull market phase. The main reason for this is that the BTC holdings of whale investors, which have a significant impact on price action, do not increase.
CryptoQuant explained that the price of Bitcoin has historically risen after whale investors, especially the group that owns 1 thousand-10 thousand BTC, have accumulated more BTC. However, recently this group has not increased their BTC holdings, showing a different pattern from the previous trend. CryptoQuant attributed this to reduced influx of US institutional investors due to US regulations.
CryptoQuant pointed out that the world's reserve currency, the US dollar, has the most impact on the change in BTC prices.
Therefore, US institutional entry is important for Bitcoin's bull market. However, CryptoQuant observed that the assets of US institutions have decreased since April 2021 and that these assets did not increase even though BTC has increased by 100% this year. This indicates that there is no capital inflow from US institutions.
CryptoQuant noted that the SEC's regulations are putting pressure on US institutional investors to invest in crypto, and a bull market seems unlikely to come until these external factors are resolved.
*Not investment advice.
