Bitcoin's recent bullish trend, with prices hovering above $71,000, has sparked increased investor interest. Data indicates that long-term investors, having sold off after March's all-time high (ATH), are now in accumulation mode. CryptoQuant analysts have highlighted significant factors driving this demand surge.
Key Drivers of Bitcoin Demand Growth
1.Whales and Long-term Holders:
There's been a notable increase in BTC balances among long-term investors and large holders (whales). This resurgence follows a period of reduced activity since March.
2.New Whales Entering the Market:
New major Bitcoin investors have been purchasing BTC at a staggering rate of $1 billion per day.
3.Spot Bitcoin ETFs:
Increased inflows into US spot Bitcoin ETFs indicate a rising demand for Bitcoin among institutional investors.
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Market Shifts: Bitcoin and Ethereum See Increased Accumulation by Long-Term Holders
Long-term Bitcoin holders have accumulated 70,000 BTC in the past 30 days, marking the largest increase since late April. Whales are also buying at a monthly rate of 4.4%, the fastest pace since April 20.
CryptoQuant analysts suggest that the recent decrease in intense sales following the ATH in March has brought the unrealized profit rate of investors to 0%, indicating a potential market equilibrium. This reduction in sales pressure could signal an upward movement in Bitcoin prices.
Analysts also note a growing interest in Ethereum. Since May 20, following the approval of spot ETH ETFs in the US, long-term Ethereum investors have increased their daily purchases to an average of 40,000 ETH, compared to 5,000 ETH before the ETF approval. This uptick in demand is mirrored by accelerated growth in the total assets of large ETH investors.
Bitcoin and Ethereum are experiencing significant demand from large investors and long-term holders, suggesting a potential for continued price growth. The decrease in sales pressure and the rise in institutional interest through ETFs contribute to a positive outlook for both cryptocurrencies.