Bitcoin (BTC) has recently maintained a price above $71,000, reflecting a surge in interest and confidence among long-term investors and major stakeholders. This trend indicates that significant investors, often referred to as Bitcoin whales, have started accumulating considerable amounts of the leading cryptocurrency over the past month.
How Have Major Investors Influenced Bitcoin?
According to CryptoQuant, a cryptocurrency data provider, there has been a significant revival in Bitcoin demand, an essential factor for a sustainable price rally. Various elements contribute to this positive trend. Notably, the balances of long-term and significant investors are rising more quickly, indicating strong belief in Bitcoin’s future performance and potential value appreciation.
Moreover, the market is experiencing substantial daily inflows from major Bitcoin investors, with these stakeholders providing daily inflows of $1 billion over the past month. This financial commitment highlights the increasing allure of Bitcoin.
What Role Do Spot ETFs Play?
Additionally, there has been a marked increase in Bitcoin purchases by spot ETFs in the US. These ETFs, which operate similarly to stocks and hold Bitcoin as the underlying asset, are seeing more buying activity, further boosting Bitcoin demand and supporting price stability and potential upward movement.
Key Insights for Investors
– Long-term and major investors are rapidly increasing their Bitcoin balances, indicating strong confidence in its future value.
– Daily inflows of $1 billion from major investors show significant financial commitment to Bitcoin.
– Increased Bitcoin purchases by spot ETFs in the US suggest growing institutional interest.
– Decreasing intense selling by investors points to market stabilization.
In addition, data indicates a decrease in aggressive selling by investors, as evidenced by the unrealized profit ratio resetting to 0%. This suggests a potential equilibrium point in the market. Reduced selling pressure could support current price stability and pave the way for future gains.
Over the last 30 days, persistent investors accumulated 70,000 BTC, with Bitcoin whales increasing their demand by 4.4% monthly. This underscores the strong confidence that significant investors have in Bitcoin’s long-term value.
On the ETF front, spot Bitcoin ETFs saw inflows for 18 consecutive days, with the total net inflow for US spot Bitcoin ETFs reaching $218 million as of June 6, 2024. Grayscale’s ETF GBTC experienced a net outflow, while BlackRock’s IBIT saw a substantial inflow, further cementing institutional confidence in Bitcoin.