Bitcoin Bitcoin
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According to CryptoQuant analysts, long-term holders are increasing their monthly holdings at the fastest pace since April 2023.
CryptyQuant said, “Bitcoin whales have been increasing their holdings at a monthly rate of 6.3%, the fastest pace since April 2023, indicating increasing demand for Bitcoin.”
The analytics firm’s Wednesday market report noted that increased demand for Bitcoin from long-term holders is supporting the digital asset’s price. This is despite the cryptocurrency’s increased supply in the market due to confiscated Bitcoin held by the German and U.S. governments and the distribution of funds from the closed Bitcoin exchange Mt. Gox. The report highlighted a chart showing the acceleration of whale accumulation as the Bitcoin price fell from a high of $71,000 to the current range of $58,000–59,000.
Bitcoin long-term holders are now accumulating their coins at the fastest pace in a year. Image: CryptoQuant.
The analysts said long-term holders made big profits when the price peaked above $70,000 in early June. However, they have since suffered some losses and have become less willing to sell. “This could be an early sign of a Bitcoin price bottom,” they added. Nevertheless, the CryptoQuant report said it could take a little longer for the Bitcoin price to bottom and start a new uptrend, as stablecoin liquidity growth is not yet in full swing.
Stablecoin liquidity shortage
The report said that USDT market cap is still slowing. “Bitcoin prices typically rise as more liquidity flows into the crypto market through USDT minting, but this condition has not yet been met,” the analysts added.
The CryptoQuant report states that stablecoin liquidity is a necessary condition for a price rally. While there is positive movement in the stablecoin market via USDC, the lack of corresponding growth in USDT market cap could delay or weaken the possibility of a significant Bitcoin price rally.
According to The Block’s pricing page, the largest digital asset by market cap was trading at around $57,927 at the time of writing, down from its daily high of around $59,500.
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