Bitcoin has been trading above $101,000 this weekend, and some indicators suggest that it might still have room to grow.
What Is the Realized Profit Ratio?
One indicator analysts are looking at is the Realized Profit Ratio. This might sound complicated, but it’s basically a tool to help us see if big Bitcoin holders (called whales) are selling off their Bitcoin to take profits.
Whales are wallets that hold large amounts of Bitcoin, usually ranging from 10 to 10,000 BTC. When these whales start selling in large amounts, it can mean they believe Bitcoin has reached its peak price for this cycle.
Right now, though, data from CryptoQuant shows that whales are not selling like they did during past all-time highs. This could mean they think the Bitcoin price will still rise and hasn’t hit its peak yet.
Bitcoin ETFs Are Buying Big
Another piece of the puzzle is the activity from Bitcoin ETFs (exchange-traded funds). For two weeks in a row, U.S.-based Bitcoin ETFs have purchased over $2 billion worth of Bitcoin. When institutional investors like ETFs buy Bitcoin in such large amounts, it can create more demand, which often pushes the price higher.
Predictions of a $150,000 Bitcoin
Some predictions suggest that Bitcoin could reach $150,000 by the end of the year. While these are just estimates, the combination of whale behavior and large purchases by ETFs has many in the market feeling optimistic.
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