CryptoQuant analyst Mignolet suggests that it’s an opportune time for accumulation whales to initiate bullish movements. Mignolet, who authored Investment Secrets of Bitcoin Whales, points out that the unspent transaction output (UTXO) in profit has been “breaking away from its low point.” According to the chart, Bitcoin (BTC) UTXOs in profit currently stand at 80.7%.

Accumulation Whales to Respond

This period could be when accumulation whales react to market fear, potentially indicating a V-shaped rebound. A UTXO represents an amount of cryptocurrency that has already been sent and authorized, and is ready for the recipient to spend.

Market Trends and UTXO Insights

In simple terms, a lower amount of BTC UTXO is in profit now compared to March, when Bitcoin reached an all-time high of $73,750. The current market scenario resembles October 2023, a time when Bitcoin gained upward momentum, leading to a market-wide bull run.

Mignolet believes that accumulator whales might soon respond to the prevailing market-wide FUD (fear, uncertainty, and doubt). This response could potentially result in a “V-shaped rebound.”

Market Overview

The optimistic outlook comes as the global crypto market has endured a bearish trend over the past month. Recent data indicates that the global cryptocurrency market capitalization dropped from $2.7 trillion to $2.34 trillion in the last 30 days.

Bitcoin briefly dipped to a one-month low of $58,402 on June 24. This decline coincided with the spot BTC exchange-traded funds (ETFs) in the U.S. recording $174.5 million in net outflows.

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