Key Points
- Bitcoin whales’ buying appetite is back, according to CryptoQuant.
- This is an indication of accumulation opportunities at current prices.
According to a new report from CryptoQuant, an on-chain and market analytics tool, Bitcoin whales are back with a strong buying appetite.
The team at CryptoQuant revealed that the whales’ recently renowned Bitcoin buying spree is a sign that this is a good time for accumulation at current Bitcoin prices.
At the moment of writing this article, BTC is trading above the important level of $71,000.
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On June 6, the ECB announced a reduction in interest rates, a move that was anticipated by many. Following this announcement, global equity indices and Bitcoin experienced a surge in price. This was further supported by U.S. jobless claims exceeding expectations.
Bitcoin demand growth conditions continue to improve
Accoridng to the CryptoQuant report, the Bitcoin demanding growth conditions have continued to improve. This is a necessary element for a sustainable price rally.
They noted that this demand recovery for Bitcoin is taking place amidst important events:
- Traders faster growth in the total balances of permanent holders and large investors
- $1 billion daily inflows of new large BTC investors
- An increase in the purchase of Bitcoin from spot ETFs in the US
According to the report, heavy selling by traders has been exhausted and this has been signaled by their unrealized profit ratio resetting to 0%.
The report continues and details that the demand from large BTC holders or whales has started to accelerate again after being is a slowdown since March.
According to the data, permanent BTC holders have accumulated 70k BTC in the past 30 days, and this marked the largest increase since late April.
Also, Bitcoin demand from large investors is growing at a monthly rate of 4.4%, the fastest pace since April 20. According to the report, accelerating demand from these cohorts of Bitcoin holders is highly correlated with the coin’s price.
Bitcoin continues to remain surrounded by optimistic price predicitons ahead of the weekend, with analysts debating the probability of BTC hitting even $350,000 by August.
