07/11/2023
52 CommentsBitcoin Whales Are Accumulating at Fastest Pace Since April 2023
A recent report from CryptoQuant highlights a notable trend in the Bitcoin market, where long-term holders (often referred to as “whales”) are accumulating at their fastest monthly rate since April 2023 at 6.3%. This accumulation trend has accelerated as Bitcoin’s price has fallen from a high of $71,000 to its current range of $57,000-$59,000.
The surge in demand from this group of investors is helping to support Bitcoin prices, despite increased supply from various sources such as Bitcoins seized by the German and US governments as well as distributions from the bankrupt Bitcoin exchange Mt. Gox .
The report suggests that these holders are reluctant to sell due to experiencing some losses after making huge profits when the price peaked above $70,000 in early June.
Analysts point out that the hesitation of long-term hodlers to sell could be an early sign of a Bitcoin price bottom. However, they warn that it could take some time for Bitcoin to bottom out and start a new uptrend.
The report highlights the importance of stablecoin liquidity for a significant price increase. Despite some positive moves in the stablecoin market via USDC, the USDT market capitalization is still slowing down. The lack of growth in USDT liquidity could delay or reduce the potential for a significant price increase in Bitcoin.
At press time, Bitcoin is trading around $58,152, down from daily highs of around $59,500.
Insights from CryptoQuant suggest that despite strong accumulation activity from long-term holders, broader market conditions, particularly stablecoin liquidity, will play a key role in determining the timing and strength of any potential Bitcoin rally.
