While Major Cryptocurrencies Lose Value, Bitcoin Remains Stable

CoinDesk 20 Index: 1,868.26 -3.74%

Bitcoin (BTC): $60,722.20 -0.88%

Ether (ETH): $2,366.16 -3.13%

S&P 500: 5,709.54 -0.01%

Gold: $2,647.23 -0.49%

Nikkei 225: 38,552.06 +1.97%

Bitcoin (BTC) and ether (ETH) remained in the red during Asian trading hours. BTC is trading sideways above $61,100, while ETH is trading at $2,390, down 4%. Crypto markets have taken a major hit following Iran’s vowed retaliatory airstrikes on Israel, putting a damper on a potential rally for risk assets including bitcoin.

CryptoQuant founder Ki Young-Ju said whales continue to accumulate bitcoin at unprecedented rates despite the macro environment and market dullness. The CoinDesk 20 (CD20) Index, which measures the performance of the largest digital assets, fell over 3% as investors continued to sell most major cryptocurrencies. Losses in BTC exchange-traded funds (ETFs) continued yesterday with an outflow of $91.76 million. Ether ETFs experienced the opposite, breaking a two-day outflow streak with inflows of $14.45 million.

Tokyo-listed bitcoin holder Metaplanet Inc. is using bitcoin (BTC) options to increase its holdings, a departure from Microstrategy’s debt-fueled accumulation strategy. On Tuesday, Metaplanet announced the sale of 223 contracts of $62,000 strike bitcoin options expiring on December 27. Transactions involving Singapore-based QCP Capital as the other party generated a premium of 23,972 BTC ($1.44 million). Metaplanet posted $13.826 million in margin collateral, with a premium of 0.1075 BTC offered on each contract. The transaction resulted in a nominal return of 10.75% and an annualized return of 45.63%.

The chart shows the BTC balance held by whales along with bitcoin prices. The increase in recent months means that new whales have not yet made serious profits. According to CryptoQuant founder Ki Young-Ju, “Whales are unlikely to sell until retail investors provide sufficient liquidity.” Source: CryptoQuant