Bitcoin’s price has soared over 5%, hitting a ten-week high at $67,800 as demand for the world’s leading cryptocurrency gains momentum. Behind this bullish run, data from CryptoQuant reveals two major catalysts: spot exchange-traded funds (ETFs) and significant bitcoin accumulation by so-called “whales”—large investors who move the market with their massive holdings.
CryptoQuant’s Data Points to Surging Demand
After months of tepid activity, bitcoin demand is surging again, according to CryptoQuant’s latest report. The research highlights a 177,000 bitcoin increase in monthly demand—the highest recorded since April 2024. This resurgence in interest quickly translated into a 5% jump in bitcoin’s value, bringing it to a price level unseen in over two months.
Such rapid price movement underscores the strong correlation between rising demand and bitcoin’s upward trajectory, a relationship that has fueled past bull markets.
The Role of Spot ETFs in Bitcoin’s Growth
One of the primary drivers of this surge, according to CryptoQuant, is the growing activity of spot ETFs. In a single day, U.S. spot ETFs purchased nearly 8,000 bitcoin—marking the largest daily acquisition since July. During the first quarter of 2024, these funds averaged daily purchases of around 9,000 bitcoin, significantly influencing bitcoin’s price stability and rise.
As we enter Q4, the sustained interest from these institutional players could further propel bitcoin’s price, particularly given the seasonally positive trends that often occur in the latter part of the year.
Whale Accumulation: A Long-Term Bullish Indicator
Another crucial factor contributing to bitcoin’s resurgence is the growing accumulation of bitcoin by whales—large-scale investors not linked to exchanges or mining pools. CryptoQuant’s data reveals that these investors have amassed 670,000 bitcoin, with their holdings surpassing the 365-day moving average. This steady accumulation, which continues to grow year-over-year, signals a strong positive outlook for bitcoin’s price in the coming months, echoing trends seen in previous bull markets.
As demand continues to build, supported by institutional investments and whale activity, bitcoin’s price trajectory seems poised for further growth.
Conclusion
With institutional players like ETFs and whales leading the charge, bitcoin’s latest price surge is a testament to the market’s evolving dynamics. As these forces continue to align, the stage may be set for a continued rally, especially with seasonal trends and historical patterns favoring further gains.
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Disclaimer: The information in this article is for educational purposes only and should not be considered financial advice. Cryptocurrency investments are volatile, and readers should conduct their own research before making any financial decisions.
