Bitcoin Whale Activity Surges: Large Investors Return to Market After Lull
Bitcoin Whales– After a brief period of profit-taking and low activity in early January, large Bitcoin (BTC) holders, often referred to as “whales,” have returned to the market, showing renewed interest in the cryptocurrency. Data from CryptoQuant reveals that the monthly growth rate of Bitcoin holdings among these major investors has surged significantly, climbing from -0.25% on January 14 to +2% on January 17. This is the highest monthly growth rate seen since mid-December, signaling a shift in market sentiment.
What’s Driving the Renewed Interest in Bitcoin?
This growth in BTC holdings comes amid the political landscape shifting with Donald Trump’s presidency, where many traders expect pro-crypto policies to be introduced, potentially boosting institutional investments in Bitcoin. Additionally, there are expectations that Trump might build a strategic Bitcoin reserve, further fueling the demand for the digital asset.
Big Buyers and Reduced Selling Pressure
Notable recent buyers include MicroStrategy, a Bitcoin development company, and KULR, an energy management firm. The increase in demand from these institutional players has reduced selling pressure, especially after Bitcoin saw daily profits as high as $10 billion when it neared the $100,000 mark in December.
Long-term Bitcoin holders, often considered “smart money,” have sold over 1 million BTC since September, but this trend seems to have bottomed out, according to CoinDesk’s analysis. Currently, unrealized profit margins for traders are near zero, which can often act as a price floor, indicating a possible stable point before Bitcoin’s next big move.
Cooling Retail Demand: What’s Next for Bitcoin Prices?
While whale activity is increasing, retail spot demand for Bitcoin seems to be cooling. CryptoQuant’s report notes that while apparent demand has expanded, the rate of expansion has slowed from 279K BTC in early December to just 75K BTC today. According to the firm, for prices to rally significantly, demand growth needs to accelerate once again.
Bitcoin’s future trajectory may depend on these supply-demand dynamics, as well as broader market sentiment.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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