Bitcoin OGs Sit on Record Profits as Market Structure Shifts
Bitcoin's market structure has undergone significant changes in recent times. According to CryptoQuant founder Ki Young-ju, Binance traders' unrealized gains are nearly three times higher than at the 2021 cycle peak, making this current cycle their most profitable yet.
The shift in market dynamics is attributed to spot Bitcoin ETF inflows and digital asset treasury (DAT) companies emerging as major buyers absorbing Bitcoin supply. This has led to a significant decrease in leverage on-chain, with the BTC/USDT futures leverage ratio dropping from over 0.5 to approximately 0.3.
Ki Young-ju pointed out that long-term holders have started buying again, similar to when the cryptocurrency fell to around $16,000 in 2023. This has resulted in a surge in market-order buying at the cycle's bottom, which could be an early signal of changing sentiment.