Demand for Bitcoin (BTC) has seen an incredible increase, especially among large investors and long-term holders. This is a positive sign according to the laws of supply and demand, and could indicate a significant rise in the prices of the king of digital currencies.
Increased demand for Bitcoin
According to market analysis platform CryptoQuant, there is one Obvious increase In demand for Bitcoin. This is evidenced by reduced selling pressure from Bitcoin traders, who have now taken their profits. Earned profit margins currently hover around 3%, a significant decline from 69% in March. Analysts expect selling pressure to remain low for now, leaving room for price increases. Price increases that could of course quickly lead to a new all-time high.
Another indicator of rising demand is the revival of flows into US exchange-traded funds (ETFs). These ETFs have seen a 19-day streak of inflows since mid-May, with hundreds of millions of dollars in new investments. CryptoQuant reports that the total holdings of these ETFs have risen from 819,000 BTC on May 1 to more than 859,000 BTC.
The role of Bitcoin whales
Bitcoin whales, large investors who own large amounts of Bitcoin, have increased demand by adding more than $1 billion worth of Bitcoin to their holdings. This group of investors increased their Bitcoin Treasuries by 4.4% last month, the fastest since mid-April. The current activity of Bitcoin whales is reminiscent of their on-chain movements in 2020, CryptoQuant says, when Bitcoin rose from $10,000 to $70,000.
Additionally, long-term holders have accumulated more than 70,000 BTC in the past 30 days, the largest increase since late April. Interestingly, Ethereum (ETH) is also showing similar growth in demand, especially since the approval of Ethereum ETFs by the US Securities and Exchange Commission (SEC). The daily purchases of long-term holders and the total holdings of ETH investors have increased significantly.
Although demand for both BTC and ETH is growing, CryptoQuant analysts cannot yet guarantee price increases due to the lack of recovery in stablecoin liquidity growth. A rise in stablecoin liquidity is usually accompanied by market increases, the absence of which keeps the market in a holding pattern for the time being.
However, the growing demand for Bitcoin indicates a potentially optimistic future for the cryptocurrency.
Post views: 0
Something new every day in the world of crypto! Stay informed 7 days a week To follow us on Instagram.
“Total coffee specialist. Hardcore reader. Incurable music scholar. Web guru. Freelance troublemaker. Problem solver. Travel trailblazer.”
More Stories
Thai Air Force wants Swedish Gripen 39 fighter jets
Ageas surprises with higher operating result
Horse Palace in Belt for sale