Bitcoin Whales- Large Bitcoin Investors Amass Coins at Highest Speed Since April 2023
Bitcoin Whales– According to analysts at CryptoQuant, Bitcoin whales are boosting their holdings at a monthly growth rate of 6.3%, the highest pace seen since April 2023. This surge in accumulation suggests growing demand for bitcoin despite recent market challenges.
In their Wednesday market report, CryptoQuant highlighted that the rise in bitcoin acquisition by long-term holders is bolstering the cryptocurrency’s price resilience. This trend occurs amid increased bitcoin supply hitting the market from seized assets and the distribution of Mt. Gox funds.
The report noted that as bitcoin’s price corrected from highs around $71,000 to its current range of $58,000-$59,000, whale accumulation rates have intensified. Analysts observed that while long-term holders reaped substantial profits during bitcoin’s peak above $70,000 in early June, subsequent losses have tempered their selling intentions.
CryptoQuant analysts cautiously suggested that this uptick in whale accumulation might signal a potential price floor for bitcoin. However, they cautioned that the cryptocurrency market might require more time to stabilize and initiate a new upward trend, particularly as stablecoin liquidity growth remains subdued.
Stablecoin Liquidity Key for Bitcoin Rally, USDT Market Cap Lags Behind
According to a recent CryptoQuant report, the market capitalization of USDT (Tether) continues to stagnate, which typically hinders Bitcoin’s price rally potential. Analysts noted that Bitcoin typically sees upward momentum when liquidity increases via USDT minting, a condition that hasn’t yet materialized.
The report emphasized that stablecoin liquidity, particularly through USDT, is crucial for catalyzing significant price movements in Bitcoin. While there has been some positive activity in the stablecoin market with USDC (USD Coin), the lack of corresponding growth in USDT’s market cap could delay or weaken the prospects for a substantial Bitcoin price rally.
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