Institutional demand is back, pushing the price of Bitcoin above $67.000 currently.
According to the latest weekly report published by CryptoQuant, institutional demand for Bitcoin, reflected in positive inflows into spot ETFs, and increasing accumulation of BTC by whales are key factors driving the growth in the price of Bitcoin.
The market analysis platform also noted that the seasonal period we are currently in is influencing BTC's upward trajectory.
Demand for Bitcoin resurfaces
According to CryptoQuant, the recent recovery in the price of Bitcoin has captured the attention of investors, driving a growth of 177.000 BTC in the last week; the highest figure since April. This has led the price of Bitcoin to oscillate between $66.600 and $68.100 in the last few days, recording a ten-week high.
According to onchain data, the price of BTC has not exceeded $67.000 per unit since mid-July.
Source: CoinMarketCap
In her reportCryptoQuant highlighted that this increase in the price of Bitcoin is mainly due to a resurgence in demand for the cryptocurrency, driven by the activity of institutional investors and market whales.
Bitcoin investors have shown renewed optimism, as whales continue to accumulate BTC in large quantities. Currently, the total balance of Bitcoin held by these entities, excluding exchanges and mining pools, amounts to 670.000 BTC. This increase in accumulation suggests that whales are betting on sustained growth in the price of BTC in the long term.
The influence of spot ETFs on the rise in the price of Bitcoin
Bitcoin spot ETFs have played a crucial role in the cryptocurrency’s recent price surge. Over the past few weeks, these funds have acquired large amounts of BTC. Recently, spot ETFs recorded the highest Bitcoin purchase since July, with nearly 8.000 BTC in a single day. CryptoQuant underlined that these BTC purchases are underpinning the growth in demand for the cryptocurrency.
The report also noted that in the first quarter of 2024, US-approved spot ETFs purchased an average of 9.000 BTC daily, leading to a significant increase in the price of the cryptocurrency. According to the platform, this trend suggests that there is growing confidence in the cryptocurrency market, and that Bitcoin is increasingly gaining recognition as a legitimate investment asset.
The increasing accumulation of whales and seasonal performance
Bitcoin accumulation by whales has also been a driving factor in the cryptocurrency’s recovery in the market. These large investors have been increasing their Bitcoin holdings, reflecting strong confidence in the price growth potential. Moreover, this phenomenon occurs against a backdrop of positive seasonal performance for Bitcoin.
Historically, Q2012 has been a favorable period for Bitcoin price, especially in halving years. CryptoQuant noted that in 2016, 2020, and 9, Bitcoin price saw significant increases in this period, with increases of 59%, 171%, and 2024%, respectively. This year, Q10 130 follows a similar trajectory, with Bitcoin showing bullish trends that mirror previous cycles. At the time of writing, the leading cryptocurrency is reflecting a monthly increase in price of over XNUMX%, while annual growth is over XNUMX%.
The combination of rising institutional demand and whale accumulation of BTC, along with seasonal performance, has created an environment conducive to Bitcoin price recovery. As such, the platform expects that as the market enters the fourth quarter, the cryptocurrency will continue to gain momentum and find new highs.
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