BTC whales are in a bullish “accumulation” phase as Donald Trump takes office
Large Bitcoin (BTC) holders, known as whales, are back buying more of the asset after a lull in early January and a bout of profit-taking, CryptoQuant data showed.
The monthly percentage growth of major investors’ Bitcoin holdings accelerated from -0.25% on January 14 to +2% on January 17, the highest monthly rate since mid-December.
This growth comes on the back of Donald Trump becoming US President, with traders expecting him to introduce pro-crypto policies and build a strategic reserve of Bitcoin, both events that could fuel institutional capital into the asset in the near term. The main driver of BTC demand and price. Among the recent notable buyers is the development of Bitcoin MicroStrategy Corporation Energy Management Systems Company Kohler.
As such, Bitcoin selling pressure has decreased significantly after posting daily profits of up to $10 billion as the asset approached $100,000 in December. Long-term Bitcoin holders, viewed as “smart money,” have sold more than 1 million Bitcoin since September, and this behavior appears to have bottomed out, as CoinDesk analysis noted Wednesday.
At the same time, traders’ unrealized profit margins are now close to zero. In terms of cryptocurrencies, this often serves as a price floor during a bull market, indicating that we may be at a stable point before the next move.
However, spot retail demand for Bitcoin appears to be declining, according to CryptoQuant.
“The apparent demand for Bitcoin has continued to be in the expansion zone (green zone in the chart on the left). However, the expansion rate has declined from 279,000 BTC in early December 2024 to 75,000 BTC today,” the company said in its report on Friday.
Virtual demand is an on-chain metric used to measure the balance between Bitcoin production (coins newly minted through mining) and changes in its stock (coins that have been inactive for more than a year).
“Demand growth must accelerate again for prices to rise significantly,” she added.
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2025-01-24 14:53:00