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The Growing Demand Among Bitcoin Whales
Recent research conducted by crypto data firm CryptoQuant has shed light on the increasing demand among the largest holders of Bitcoin, often referred to as “whales.” These investors, who possess significant amounts of Bitcoin—typically at least 1,000 BTC, worth over $69 million—have shown a growing appetite for acquiring even more of the cryptocurrency.
Unlike retail investors who actively trade, Bitcoin whales are known for holding onto their assets for extended periods without selling. This strategy has proven lucrative, as they benefit from price increases over time. The current trend indicates that demand from this group of investors has reached unprecedented levels, according to CryptoQuant.
Permanent Holders and Market Dynamics
CryptoQuant’s report also highlights that demand from “permanent holders” has surpassed the rate at which new Bitcoin is being created. This imbalance could potentially fuel a significant price rally for Bitcoin, especially in the wake of the upcoming halving event.
The halving, a recurring event scheduled to occur next week, involves a reduction in Bitcoin miner rewards by half. This adjustment is expected to enhance the scarcity of Bitcoin in circulation, a factor that historically has driven up its price. Analysts anticipate a positive impact on Bitcoin’s value, particularly when combined with the influx of capital entering the market through the introduction of popular Bitcoin spot exchange-traded funds (ETFs).
Impact of ETFs on Demand
A spokesperson from CryptoQuant noted that the demand surge this year can be attributed in part to the growing popularity of ETFs. These financial instruments have attracted a diverse range of investors, including both seasoned whales and newcomers to the crypto space. The influx of capital from ETFs has contributed to the overall uptrend in Bitcoin’s price performance.
As of the latest market data, Bitcoin is currently priced at $69,316 per coin, following a recent peak close to $74,000. This substantial price appreciation marks a significant progression from the beginning of the year when Bitcoin was trading below $45,000.
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