Long-term Bitcoin investors are growing their holdings at the quickest monthly pace seen since April 2023. CryptoQuant experts indicate a monthly growth rate of 6.3%, showing a considerable increase in demand for the cryptocurrency.
Founder & CEO of CryptoQuant noted this trend stating, “Permanent holders, mostly custodial wallets with no outflows, accumulated 85K Bitcoin in the last 30 days. While some panic sell, ‘the others’ are buying.”
Market Impact and Government Seizures
The market report, however, highlights that this surge in demand is helping stabilize Bitcoin’s price. This comes amid a wave of seized Bitcoins being released into the market by the German and U.S. governments.
Additionally, funds from the defunct Bitcoin exchange Mt. Gox are also being distributed. Despite these additional supplies, the rate of accumulation by long-term holders is increasing, reflecting their confidence in Bitcoin’s future.
Price Trends and Stablecoin Liquidity
As Bitcoin’s price dropped from a high of $71,000 to its current range of $57,000 to $59,000, the rate of whale accumulation has picked up speed. Analysts note that long-term holders experienced strong profits when prices peaked above $70,000 in early June and are less willing to sell at current prices.
This behavior could signal an approaching price bottom, although the report suggests that Bitcoin prices might take longer to stabilize and rise again due to insufficient stablecoin liquidity growth.
CryptoQuant’s report highlights the critical role of stablecoin liquidity in driving a significant Bitcoin price rally. While USDC shows some positive movement, the stagnant growth in the USDT market cap could delay substantial price increases.
Also Read: Bitcoin Price Holds Strong Despite Germany’s $362M Sell-Off
