Bitcoin Whales Accelerate Accumulation Rate since April 2023

As a long-term Bitcoin investor with several years of experience under my belt, I find the current trend of increasing demand for Bitcoin quite encouraging. The fact that permanent holders, who are not ETFs, exchanges, or miners, have accumulated 85K BTC in the last 30 days, while some panic sellers are exiting the market, speaks volumes about the confidence in Bitcoin’s future.

As a crypto market analyst, I’ve observed an impressive surge in long-term Bitcoin investments recently. The monthly growth rate, according to our team at CryptoQuant, has reached 6.3% – the highest it’s been since April 2023. This data underscores a significant uptick in demand for Bitcoin.

As an analyst, I’ve observed an intriguing trend recently. The founder and CEO of CryptoQuant pointed this out, stating that permanent holders, specifically those with custodial wallets showing no outflows, have amassed approximately 85,000 Bitcoin over the past 30 days. Amidst the chaos of some selling in panic, these investors remain steadfast and continue to buy.

Over the past month, approximately 85,000 bitcoins have been amassed in permanent wallets that have not experienced any outgoing transactions. These wallets do not represent ETFs, exchanges, or mining operations. Concurrently, about 16,000 bitcoins were withdrawn from ETF holdings during the same timeframe. Amidst market turmoil, some are selling in haste, whereas others continue to purchase.

— Ki Young Ju (@ki_young_ju) July 10, 2024

Market Impact and Government Seizures

Despite the influx of Bitcoin from government sources, the market analysis indicates that this increased demand is supporting Bitcoin’s price stability.

Mt. Gox’s defunct funds are now being dispersed, adding to the existing bitcoin supply. Yet, the pace at which long-term investors are amassing more bitcoins is quickening, demonstrating their belief in Bitcoin’s promising future.

Price Trends and Stablecoin Liquidity

I’ve observed an uptick in whale activity as Bitcoin’s price dipped from its peak of $71,000 down to the current range between $57,000 and $59,000. Long-term investors, who reaped substantial profits when prices surged above $70,000 in early June, seem less inclined to sell at present prices.

The current trend may indicate that Bitcoin’s price is about to hit a bottom, but according to the report, it could take some time for Bitcoin prices to regain stability and rise again due to slow growth in stablecoin liquidity.

As a researcher examining the latest findings from CryptoQuant’s report, I can confirm that stablecoins play a pivotal role in shaping Bitcoin price rallies. Specifically, the report indicates that an uptick in US Dollar Coin (USDC) liquidity contributes to Bitcoin’s price surge. However, the stagnant expansion of Tether’s (USDT) market capitalization may hinder substantial Bitcoin price growth.

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2024-07-10 19:49