TL;DR
- Crypto whales are acquiring Bitcoin at a rate of $1 billion daily, similar to before the 2020 bull run.
- Spot ETFs in the U.S. have reached all-time highs in their Bitcoin holdings, driving institutional demand.
- There is a slowdown in the growth of Tether’s (USDT) market cap, which could affect crypto market liquidity.
In recent weeks, there has been a considerable increase in the activity of crypto whales, similar to what was seen before the 2020 bull run. According to a recent report from CryptoQuant, these “whales” are acquiring Bitcoin at an accelerated rate, injecting approximately $1 billion daily. This trend mirrors the massive accumulation pattern that preceded the bull rally four years ago.
One of the key factors driving this demand is the increase in Bitcoin holdings by spot Exchange-Traded Funds (ETFs) in the United States. These products, which track the price of BTC and are traded on traditional exchanges, have reached all-time highs in their reserves, demonstrating strong interest from institutional investors. The participation of these high-caliber financial actors suggests significant confidence in BTC’s long-term potential, providing a solid foundation for possible price increases in the near future.
#Ethereum’s demand has also increased. Post-May 20th, #ETH demand spiked due to spot ETH ETF approvals in the USA.
Daily purchases by permanent holders rose to 40K ETH, with large investors holding 16M $ETH. pic.twitter.com/HI48djRKQs
— CryptoQuant.com (@cryptoquant_com) June 6, 2024
At the same time, Ethereum is also showing positive signals. Since May 20, its demand has progressively grown, driven in part by the recent approval of spot ETFs for ETH in the United States. This approval has boosted a series of daily purchases by so-called “permanent holders,” who are acquiring around 40,000 ETH daily. Currently, large investors hold a record 16 million ETH, reinforcing the perception of value and confidence in Ethereum’s future.
Bitcoin and Ethereum Strengthen, Tether Raises Alarms
However, not all news is good. CryptoQuant has noted a slowdown in the growth of Tether’s (USDT) market cap, one of the most widely used stablecoins. Stablecoins, like Tether, are designed to maintain parity with fiat currencies such as the U.S. dollar and are fundamental in facilitating transactions in the crypto market. The slowdown in Tether’s growth could indicate a reduction in available liquidity, potentially hindering the market’s ability to sustain a prolonged price rally.
In conclusion, while the accumulation of Bitcoin and Ethereum by large investors and the increase in ETF holdings suggest a bullish environment, the slowdown in Tether’s growth has raised some cautionary alarms. It is necessary to consider this factor and conduct thorough analysis before making investment decisions, as liquidity is a crucial component for the stability and growth of the market.
