Key Points
- Bitcoin whales are adding to their holdings at the fastest rate since April 2023, CryptoQuant analysts note.
- The lack of stablecoin liquidity could lower the effect of any price rally.
According to the latest reports from CryptoQuant analysts, Bitcoin whales are accumulating BTC at the fastest monthly rate since April 2023.
They note that long-term Bitcoin holders have been increasing their holdings at a monthly growth rate of 6.3%. This is the fastest pace in over a year, showing a rising demand for BTC.
CryptoQuant’s Wednesday report on the market reveals that the increasing demand for Bitcoin’s long-term holders supports the crypto’s price.
Price Support for Bitcoin Amidst Recent Sell-Offs
Such support turns out useful in the context of Bitcoin facing an increase in supply hitting the market. This originated from the following factors:
- Seized BTC held by the German and US Governments
- Distribution of funds from the defunct BTC exchange Mt. Gox
Earlier, the German Government just lost its “Billionaire Bitcoin” status, due to the recent transfers.
The report also revealed charts showing that as BTC’s price dipped from a height of $71,000 to the current levels between $58,000 – $59,000, the rate of whale accumulation has been surging.
Long-term holders saw high profits when the prices surged above $70,000 at the beginning of last month. On the other hand, they experienced some losses and became less willing to sell, according to their notes.
CryptoQuant analysts added that this could hint at a Bitcoin price bottom.
According to their report, prices may take a little longer to bottom and begin a new bullish trend due to the lack of a full swing for the stablecoin liquidity growth.
Stablecoin Liquidity Lack of Growth
According to the report, the USDT market capitalization is currently slowing down. The notes highlighted that BTC’s price usually rallies as more liquidity enters the market via USDT minting.
This is a condition that has not been yet met, hence the lack of stablecoin liquidity.
The report highlighted that the stablecoin liquidity is a crucial factor for a price rally for Bitcoin.
There is still some positive move in the stablecoin market via USDC, but the lack of a corresponding surge in the USDT market could delay or diminish the possibility of a price rally for BTC.
Regarding Bitcoin‘s price today, at the moment of writing this article, the coin is trading above $58,000, up by approximately 2% in the past 24 hours.
