Since Donald Trump assumed office on January 20th, Bitcoin (BTC) has experienced a period of stability, fluctuating between $101,000 and $110,000. Nonetheless, a recent analysis from CryptoQuant reveals that amidst this customary price activity, Bitcoin ‘whales’ are quietly returning to the phase of accumulating this top cryptocurrency.
Bitcoin Whales Resume Accumulation
The analysis indicates that substantial BTC stakeholders, often referred to as Bitcoin ‘whales’, have resumed their accumulation efforts. Recent findings demonstrate a marked rise in the monthly percentage increase of Bitcoin holdings among these major investors.
Specifically, the total Bitcoin held by whales grew from a decrease of -0.25% on January 14 to a notable increase of 2% by January 17, indicating the highest growth rate observed since mid-December. In terms of actual numbers, these large holders’ Bitcoin holdings rose from 16.2 million on November 4 to 16.4 million by January 24.
This uptick in whale accumulation seems to be influenced by various positive developments emerging early in Trumpโs presidency. Notably, the President signed an executive order that established a Working Group on Digital Asset Markets.
This group has been charged with devising a federal regulatory framework for cryptocurrenciesโincluding stablecoinsโwithin a six-month period. Furthermore, it is set to explore the potential creation of a national digital asset reserve, igniting speculation regarding a possible US strategic Bitcoin reserve.
In addition to the increase in whale holdings, the selling pressure on BTC has significantly diminished following substantial profit-taking activity in December. This trend coincides with a recent report indicating that Bitcoin profit-taking has plummeted by 93% from its peak in December. The report states:
In December, Bitcoin holders realized daily profits nearing $10 billion as BTC approached the $100K mark. However, daily realized profits have dipped to around $2-$3 billion in January, suggesting that market participants may largely have concluded their selling of Bitcoin. Moreover, tradersโ unrealized profit margins have nearly hit zero, a level that typically signals a price floor during bullish market phases.
Nonetheless, the report points out that overall Bitcoin spot demand has diminished in the past month, raising concerns about the possibility of another bullish rally. In particular, the rate of demand growth for Bitcoin has dropped from 279,000 BTC in early December to just 75,000 BTC at the time of this writing.
Analysts Positive About BTC Rally Potential
Despite the decline in on-chain demand, cryptocurrency analysts maintain a positive outlook regarding another significant price surge for Bitcoin. For example, a recent analysis suggested that Bitcoin could aim for prices as high as $249,000 during Trumpโs term.
Another report from Bitfinex predicted that Bitcoin could reach $200,000 by mid-year, albeit amid some minor price corrections. However, much depends on how the US Federal Reserve navigates interest rate changes this year.
From a technical perspective, BTCโs cup-and-handle formation indicates a potential price target reaching as high as $275,000. As of now, BTC is trading at $106,074, reflecting a slight increase of 0.1% in the past 24 hours.
