Institutional Investors Fuel Bitcoin Demand: Whale Wallets Accumulate BTC Daily
According to a report by WuBlockchain based on CryptoQuant research, there has been a significant daily transfer of Bitcoin to a massive new whale wallet. This surge is likely due to institutional investors purchasing Bitcoin and moving it into custodial wallets. Long-term whale holders have accumulated 70,000 BTC over the past 30 days, with whale demand increasing at a rate of 4.4% per month.
Factors Driving Bitcoin Price Surge
The improving conditions for Bitcoin demand growth point towards a sustained price rise. Several factors contribute to this resurgence in demand, including:
1. **Growth in Major Investors and Permanent Holders**: Traders are observing a faster increase in the aggregated balances of major investors and long-term holders. The conviction among long-term Bitcoin holders is expected to rise.
2. **Daily Inflows of $1 Billion**: Daily investments amounting to $1 billion are being funneled into Bitcoin. This substantial investment highlights how key market participants are becoming more interested and confident in Bitcoin.
3. **New Large Investors Entering the Market**: The influx of new significant investors into Bitcoin is notable. This trend is further supported by increased purchases from US-based spot Bitcoin ETFs, following their approval, which has led to heightened activity and demand.
The approval of Bitcoin ETFs in the US has provided investors with a more convenient way to gain exposure to Bitcoin, further boosting demand. Additionally, the market has seen a reduction in selling pressure, as indicated by the reset of the unrealized profit ratio to 0%, suggesting a new accumulation phase might be beginning.
Since May 20, following the approval of US-based ETH ETFs, Ethereum has also seen a rise in demand. Both Ethereum holders and major long-term investors have increased their ETH purchases, signaling growing confidence in Ethereum as well.
Read more Why Bitcoin Hasn't Hit $100,000 Yet: Insights from Crypto Analyst Charles Edwards
Despite these encouraging signs for both Bitcoin and Ethereum, the recovery of stablecoin liquidity growth has yet to fully materialize. Nonetheless, the positive market indicators for Bitcoin and Ethereum suggest a favorable outlook moving forward.
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