Bitcoin
Bitcoin whales on accumulation spree
Bitcoin trading below $60,000 has encouraged whales to stock up on the cryptocurrency in hopes of higher prices.
CryptoQuant analysts reported that Bitcoin (BTC) whales and long-term holders have been increasing their balances at a monthly rate of 6.3%, indicating more demand for the cryptocurrency despite the market decline. BTC is down more than 21% from its peak price of $73,373 seen in March, and smart money is capitalizing on lower prices.
BTC Accumulation Wave | Source: CryptoQuant
According to the blockchain analytics firm, it is the fastest wave of accumulation since April 2023, when Bitcoin traded around $30,000. The report released on Wednesday also highlighted whale activity driving up BTC’s price in the face of selling pressure introduced over the past two weeks.
New supply of BTC flooded the market after federal authorities in Germany and the US moved thousands of tokens to centralized exchanges like Coinbase and Kraken. BTC also fell when the defunct exchange Mount Gox announced customer refunds nearly 10 years after one of the largest cryptocurrency hacks of all time.
On-chain indicators to watch Bitcoin’s rise
CryptoQuant noted that Bitcoin whales have been less likely to liquidate assets since the dip below $60,000. Price movements between $56,000 and $59,000 could also signal an initial bottom. Still, a rally from this potential local bottom depends on improved liquidity tied to the minting of stablecoins.
According to CryptoQuant, BTC typically sees higher prices when stablecoins, particularly Tether USDTincrease the minting of tokens. However, the market value of USDT packed in recent weeks. It is currently unclear when USDT and other stablecoins will resume regular minting, which refers to the creation of new fiat currencies and increasing the liquidity levels of cryptocurrencies.