The founder and CEO of the CryptoQuant analytical platform, Ki Yang Joo, announced the completion of the most profitable cycle in history by early bitcoin traders. The expert emphasized that this time, the liquidity for the exit of large holders was not provided by retail traders on cryptocurrency exchanges, as it happened in previous cycles. Spot exchange-traded funds and publicly traded companies with digital assets in the treasury became the main sources of liquidity. The structural demand from these institutional participants has pushed the unrealized profits of traders on the Binance exchange to an impressive level. This figure is almost three times higher than the previous peak level of two thousand twenty-one years. At the same time, the first cryptocurrency is currently trading in approximately the same price range as it was two years ago. The analyst attributes this situation to a period of marked reduction in leverage on the open market.

A significant portion of the unrealized gains of this cycle were actively channeled into futures positions. As traders lock in their profits, the bitcoin price has gradually stabilized near the average purchase price.CryptoQuant carefully monitors leverage in the market through a special ratio of open interest in futures to stablecoin reserves. This important indicator previously exceeded five tenths, but now it is about three tenths. The current level is still noticeably higher than the values that were observed before the launch of spot bitcoin funds in the United States. Ju believes that if funds continue to flow into ETFs, the market may again move to a high level of leverage. The expert also paid close attention to the characteristic behavior of the early large owners of the first cryptocurrency. Experienced OG traders actively opened large long positions near sixteen thousand dollars in 2000.

At that time, the ratio of market purchases and sales increased sharply precisely at the local lows of the cycle. Similar noticeable spikes in this indicator have recently been recorded on the OKX exchange and other major trading platforms. This may indicate that some experienced traders are re-opening long positions at current price levels. At the same time, Ju emphasized that this signal should not be taken as an unambiguous confirmation of the formation of the bottom. In his professional opinion, the indicator only reflects the current mood of the most experienced market participants. Earlier, other analysts pointed to weak demand for bitcoin and noticeable pressure from American regulators. Institutional players continue to carefully study on-chain data to make informed investment decisions. The market is gradually adapting to the new structure dominated by exchange-traded funds and corporate treasuries.

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The material has been prepared solely for informational purposes and does not constitute financial advice or recommendation.