Overview

Large investors in Bitcoin, often referred to as whales, are resuming their purchases of the cryptocurrency following a period of reduced activity. Data from CryptoQuant suggests a notable increase in the month-on-month growth of Bitcoin holdings among large stakeholders, rising from a decline of -0.25% on January 14 to a growth of 2% by January 17. This marks the most significant monthly increase observed since mid-December.

Key Points

• This uptick in buying activity correlates with the inauguration of Donald Trump as U.S. president, where expectations arise for potential pro-cryptocurrency regulatory changes and strategies to build a substantial Bitcoin reserve.
• Major players like MicroStrategy and KULR are prominent recent buyers.
• Selling pressure for Bitcoin has markedly diminished, seeing daily gains of approximately $10 billion as the asset nears the $100,000 milestone, with long-term holders having shed over one million BTC since September.

Market Dynamics

Currently, the unrealized profits for traders edged closer to zero, establishing a semblance of price stability in the midst of a potential bull market. Nevertheless, interest from retail investors in Bitcoin appears to be dwindling per CryptoQuant’s analysis. The report emphasized the necessity for demand growth to accelerate once more to trigger a significant price surge.