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Bitcoin‘s journey to new record levels requires increased demand, as highlighted by recent data from onchain analytics platform CryptoQuant. Despite the usual hype, whale accumulation has shown a notable slowdown, impacting Bitcoin’s upward momentum. What Is Happening on the Bitcoin Front? CryptoQuant’s latest report reveals that large Bitcoin investors, often referred to as whales, have significantly reduced their accumulation rates. The 30-day percentage change in whale holdings has plummeted from 6% in February to a mere 1% now. Historically, a growth rate above 3% has been linked to rising Bitcoin prices, but that trend isn’t currently being observed. Access NEWSLINKER to get the latest technology news. Adding to the concern, spot Bitcoin exchange-traded funds (ETFs) in the US are not compensating for the lack of whale activity. Daily net inflows into these ETFs are much lower compared to their March figures, with the recent daily average standing at 1,300 Bitcoin. For a price rally, a recovery in spot ETF purchases is deemed essential. Details on the Subject An interesting deviation from the trend comes from persistent Bitcoin holders who never sell. Unlike whales, these holders have been steadily accumulating Bitcoin at a record pace of 391,000 Bitcoin per month. This group’s demand has surpassed even the levels seen in the first quarter of 2024 when Bitcoin prices exceeded $70,000. Key Inferences Insights drawn from the current market scenario are crucial for understanding the dynamics at play: – Whale accumulation has dropped sharply, impacting Bitcoin’s upward movement.– Spot Bitcoin ETFs are not seeing enough inflows to boost demand.– Persistent holders are accumulating Bitcoin at record rates, counteracting the overall demand slowdown.– Bitcoin’s price recovery depends significantly on increased demand from both whales and spot ETFs. Recent price actions have also spooked more speculative investors, who find themselves at a loss due…

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Filed under: News - @ August 20, 2024 11:19 pm