A recent report has revealed that Bitcoin whales and long-term holders are actively purchasing over $1 billion worth of BTC daily, following a significant drop in mid-May.
This group shows no signs of selling off their holdings again anytime soon, as their unrealized profit ratio has reset to 0%.
As Bitcoin retested $72,000 in the past day, whales and long-term holders have been on a buying spree, averaging a billion dollars daily. Currently, BTC is trading at $71,220, with a slight increase in the past day and a 15% rise in trading volume.
After hitting an intra-day low of $70,300, Bitcoin surged to a monthly high of $71,875 before losing some momentum and dipping by 1% in the last hour. On the weekly chart, Bitcoin is trading 3.6% higher and 11.6% higher on the monthly chart.
Data from Crypto Quant suggests that the recent surge in Bitcoin can be attributed to the activity of whales in the market. Following a peak in demand from long-term holders and whales in mid-March, many whales sold off their holdings after Bitcoin reached its all-time high, resulting in a decrease in whale activity.
However, the trend stabilized in early May and has been steadily increasing since then, with permanent holders accumulating over 70,000 BTC in the past month.
One significant factor contributing to whale accumulation of BTC has been the Bitcoin ETFs. Inflows in ETFs hit $880 million recently, marking the second-highest single-day record ever, followed by an additional $400 million the next day.
According to a recent report, the total holdings of spot ETFs in the USA have grown from 819K on May 1st to 859K currently. The report also mentions that purchases of Bitcoin from ETFs have been a significant source of demand this year.
Despite concerns about whales dumping their holdings and affecting the price of Bitcoin, Crypto Quant suggests that the risk of this happening is low at the moment, as whales have already sold off their tokens and realized their profits.
With the support of deep-pocketed investors, Bitcoin is expected to retest its all-time high soon. Financial guru Roverk Kiyosaki even predicts that Bitcoin could surge fivefold by August and hit $350,000 by 2024.