Bitcoin Whales Are Accumulating: Is This the Start of a Bull Run?
The Block4 days ago
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Bitcoin Whales Are Accumulating: Is This the Start of a Bull Run?

Bitcoin
Whales
Accumulation
Stablecoin
Liquidity

Summary:

  • Bitcoin long-term holders are accumulating their coin stashes at the fastest rate in over a year, indicating rising demand for the digital asset.

  • The monthly growth rate of whale accumulation is 6.3%, the fastest pace since April 2023.

  • This accumulation is happening despite an increase in bitcoin supply hitting the market.

  • Analysts believe this could be an early sign of a bitcoin price bottom.

  • However, a lack of stablecoin liquidity could dampen the effect of any subsequent price rally.

  • The USDT market capitalization is still slowing down, and while there is some positive movement in the USDC market, the lack of corresponding growth in USDT may delay or dampen the potential for a significant bitcoin price rally.

Bitcoin Whales Are Accumulating: Is This the Start of a Bull Run?

Bitcoin long-term holders are accumulating their coin stashes at the fastest rate in over a year, according to CryptoQuant. This indicates a rising demand for the digital asset and could be an early sign of a bitcoin price bottom.

CryptoQuant analysts say that whale accumulation has been increasing at a monthly growth rate of 6.3%, the fastest pace since April 2023. This comes despite an increase in bitcoin supply hitting the market from seized bitcoins held by the German and U.S. governments, along with the distribution of funds from the defunct bitcoin exchange Mt. Gox.

While long-term holders realized strong profits when prices peaked above $70,000 at the beginning of June, they have since experienced some losses and are less willing to sell.

The Role of Stablecoin Liquidity

However, the report notes that a lack of stablecoin liquidity could dampen the effect of any subsequent price rally. The USDT market capitalization is still slowing down, and while there is some positive movement in the USDC market, the lack of corresponding growth in USDT may delay or dampen the potential for a significant bitcoin price rally.

Stablecoin liquidity is a necessary condition for a price rally, and the crypto market typically rallies as more liquidity enters via USDT minting.

The report concludes that bitcoin prices may take a little longer to bottom and start a new leg up as stablecoin liquidity growth is still not in full swing.

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