Bitcoin whales are accumulating at their fastest rate since April 2023: CryptoQuant

Bitcoin long-term holders are adding to their holdings at the fastest monthly rate since April 2023, according to CryptoQuant analysts.

"Bitcoin whales have been increasing their holdings at a monthly growth rate of 6.3%, the fastest pace since April 2023, indicating rising demand for bitcoin," CryptyQuant said.

Wednesday's market report from the analytics firm noted that the increase in bitcoin demand from long-term holders is supporting the digital asset's price. This comes despite the cryptocurrency facing an increase in supply hitting the market that originated from seized bitcoins held by the German and U.S. governments, along with the distribution of funds from the defunct bitcoin exchange Mt. Gox. The report highlighted charts indicating that as the bitcoin price dropped from a high of $71,000 to its current range between $58,000 and $59,000, the rate of whale accumulation has risen.

Bitcoin long-term holders are now increasing their coin stashes at their fastest rate in over one year. Image: CryptoQuant.

Analysts said that long-term holders realized strong profits when prices peaked above $70,000 at the beginning of June. However, they have since experienced some losses and are less willing to sell. "This could be an early sign of a bitcoin price bottom," they added. Nonetheless, the CryptoQuant report said 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.

Lack of stablecoin liquidity

The report said that USDT market capitalization is still slowing down. "Bitcoin price typically rallies as more liquidity enters the crypto market via USDT minting, a condition that has still not been met," the analysts added.

The CryptoQuant report said that stablecoin liquidity is a necessary condition for a price rally. While there is some positive movement in the stablecoin market through USDC, the lack of corresponding growth in USDT market cap may delay or dampen the potential for a significant bitcoin price rally.

The largest digital asset by market cap was changing hands at around $57,927 at the time of writing, having fallen from a daily high of around $59,500, according to The Block’s price page.