Bitcoin Exchange Traders Post Largest Unrealized Gains of Current Cycle, Says CryptoQuant CEO

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Bitcoin Exchange Traders Post Largest Unrealized Gains of Current Cycle, Says CryptoQuant CEO

Bitcoin traders operating on exchanges have recorded their largest unrealized gains of the current market cycle, according to Ki Young Ju, founder and CEO of on-chain analytics firm CryptoQuant. In a post on X, Ju highlighted that unlike previous cycles, spot Bitcoin exchange-traded funds (ETFs) and accumulating companies have acted as exit liquidity for exchange traders, enabling these gains.

Context: The Role of Spot ETFs and Corporate Accumulation

Ki Young Ju’s observation points to a structural shift in the Bitcoin market. Historically, exchange traders realized profits by selling to other retail traders or during speculative peaks. This cycle, however, the buying pressure from spot ETFs and publicly traded companies accumulating Bitcoin has provided a consistent source of demand. According to Ju, the scale of unrealized gains currently held by exchange traders is approximately three times the peak seen in 2021.

Spot ETFs, which hold actual Bitcoin rather than derivatives, have become a major channel for institutional and retail investment since their approval in early 2024. Companies like MicroStrategy and others have also added significant Bitcoin to their balance sheets, further absorbing supply. This structural buying, which Ju refers to as “DAT” (likely referring to digital asset treasury companies), has created a more robust exit liquidity pool for traders who bought earlier in the cycle.