As a researcher with a background in cryptocurrency and market analysis, I find the recent findings from CryptoQuant’s weekly report on the accelerating demand for bitcoin (BTC) and ethereum (ETH) to be an exciting development. The surge in demand from large investors and permanent holders is a positive sign according to the laws of supply and demand.
Market analysts at CryptoQuant, a leading intelligence platform, have noticed a significant increase in the appetite for Bitcoin (BTC) among major investors and long-term holders. This trend, as dictated by market fundamentals, is generally considered a favorable indicator for the crypto sector.
As a crypto investor, I’ve been closely following the CryptoQuant weekly reports, and the latest one indicates that market experts believe that strong and continuing demand growth for Bitcoin (BTC) is essential to fuel a sustainable price surge. Consequently, there are signs pointing towards an imminent significant price rise for BTC.
Bitcoin Demand Growth Accelerates
As a crypto market analyst, I’ve observed an intriguing development based on data from CryptoQuant. The selling pressure from Bitcoin (BTC) traders has noticeably decreased lately, suggesting they have largely realized their profits. At the moment, unrealized profit margins for these traders hover around the 3% mark. In contrast, back in early March, this figure stood significantly higher at 69%. Given this context, it’s reasonable to anticipate reduced selling pressure from BTC traders in the near term.
With demand surging and selling pressure remaining subdued, it’s clear that the appetite for Bitcoin (BTC) is on the upswing. This trend is underscored by the rebound in investments flowing into the US spot Bitcoin exchange-traded funds (ETFs).
Since mid-May, these investment vehicles have experienced a continuous influx of funds for 19 consecutive days, amounting to hundreds of millions of dollars. According to CryptoQuant, the total holdings of the ETFs have expanded from 819,000 units on May 1st to over 859,000 units now.
As a researcher studying the Bitcoin market, I’ve observed that large-scale investors, often referred to as “whales,” have not been excluded from the recent surge in demand. In fact, they’ve injected approximately $1 billion into the network over the past period. This group of investors is experiencing a robust monthly growth rate of 4.4% in their demand for Bitcoin, which marks their quickest increase since mid-April.
Bitcoin whales’ present behavior bears a striking resemblance to their past on-chain actions in 2020, preceding Bitcoin’s dramatic surge from $10,000 to $70,000. During that period, Bitcoin remained stagnant around the $10,000 mark for approximately six months. Unbeknownst to many, this prolonged period of heightened on-chain activity was in fact a series of over-the-counter transactions.
No Rally Underpinned Yet
Expanding on this, there has been a notable surge in the number of long-term Bitcoin (BTC) investors, accumulating over 70,000 coins within the past thirty days – marking their most significant gain since late April. Typically, these market players’ growing demand contributes to escalating prices.
It’s intriguing to note that the surge in demand for ether (ETH) is mirroring that of bitcoin (BTC), with the U.S. Securities and Exchange Commission’s approval of spot Ethereum ETFs being a significant contributing factor. The buying patterns of long-term investors and the expansion of Ethereum holdings have both seen noticeable upticks.
CryptoQuant analysts have noted that the absence of a significant increase in stablecoin liquidity is hindering potential price rallies for both Bitcoin and Ethereum. Typically, a surge in stablecoin liquidity signals the beginning of market uptrends.
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2024-06-09 17:38