Bitcoin whales are on an accumulation spree as the cryptocurrency trades below $60,000, according to a report by CryptoQuant. The analytics firm revealed that whales and long-term holders have been increasing their Bitcoin balances at a rate of 6.3% per month, indicating a growing demand for the digital asset despite the recent market decline.
This surge in accumulation by whales is the fastest since April 2023, when Bitcoin was trading around $30,000. The report also highlighted how whale activity has been supporting Bitcoin’s price amidst sell pressure introduced in the last two weeks. This comes as new Bitcoin supply flooded the market following moves by federal authorities in Germany and the U.S. to transfer thousands of tokens to centralized exchanges like Coinbase and Kraken.
Additionally, Bitcoin faced a setback when the defunct exchange Mt. Gox announced customer repayments nearly a decade after one of the largest crypto hacks in history. Despite these challenges, Bitcoin whales are showing confidence in the cryptocurrency by refraining from liquidating their assets, especially after the price dropped below $60,000.
The price movements between $56,000 and $59,000 could indicate an early bottom for Bitcoin, but a potential rally from this level will depend on improved liquidity tied to stablecoin minting. CryptoQuant pointed out that Bitcoin typically sees higher prices when stablecoins, particularly Tether’s USDT, increase token minting. However, USDT’s market cap has been stagnant in recent weeks, raising uncertainty about when stablecoins will resume regular minting and boost crypto liquidity levels.
Overall, the report suggests that Bitcoin whales are optimistic about the future price potential of the cryptocurrency, despite the current market conditions. Their accumulation spree indicates a belief in Bitcoin’s long-term value and resilience, even as external factors continue to impact its price. Investors and traders will be closely watching for any signs of a potential rally from the current price levels, with stablecoin activity likely to play a crucial role in determining Bitcoin’s next move.