Bitcoin (BTC) started this week with positive price action, retrieving a four-month price range previously lost in early July. Now, a historically profitable Bitcoin wallet has bought nearly $16 million of BTC, giving a bullish signal to cryptocurrency traders.
The address ‘3QYQ8YthYTaAFJmzUqiis7iRSWG7e5buBN‘ has profitably traded Bitcoin twice in the last 12 months, amassing more than $30 million in gains. In this case, a “trade” combines a balance’s inflow and subsequent outflow related to exchanges – likely buying and selling BTC.
Notably, the whale’s most recent activity consisted of a 245 BTC inflow from Binance, worth $15.98 million. Lookonchain reported this activity in a post on X on July 17, and Bitcoin was trading at $65,656 then.
Bitcoin trader’s profitable history
First, the trader purchased 718 BTC from August 9 to November 1, 2023, at a $29,385 dollar-cost average. On December 18, the address closed this position at $41,953, profiting $9 million, according to Lookonchain.
The second trade took place from February 7 to June 20, 2024. In eight transactions, 1,181 BTC were bought at an average of $48,822 and then sold in two transactions for a $21.2 million profit of $66,792 on average.
Interestingly, this entity spread its purchasings in multiple transactions at strategic times, selling in fewer transactions to realize the profit. If the pattern repeats, this profitable trader may be ready to buy more Bitcoin in the following days and weeks.
Observing smart money activity can give crypto traders and investors valuable insights into what to expect next. For example, institutional players and other whales have injected nearly $280 million into the crypto ecosystem, while crypto tycoon Justin Sun has likely amassed over $1 billion in Ethereum (ETH) since February, all previously reported by Finbold.
Nevertheless, even a historically profitable trader can be wrong, and cryptocurrencies are volatile assets that are hard to predict. There is, currently, a notable bullish signal in the markets, but investors must remain cautious moving forward.