Bitcoin Whales in ‘Accumulation Phase’ After Trump Inauguration: CryptoQuant

Bitcoin Whales in ‘Accumulation Phase’ After Trump Inauguration: CryptoQuant

Large Bitcoin holders, often referred to as "whales," have resumed their buying activity after a brief period of stagnation in early January, according to data from CryptoQuant. The data reveals that the monthly growth rate of Bitcoin holdings among large investors increased sharply from -0.25% on January 14 to +2% on January 17, marking the highest growth rate since mid-December.

This uptick in Bitcoin purchases is largely attributed to expectations surrounding President Donald Trump’s pro-crypto policies. Traders are hopeful that Trump’s administration will support crypto initiatives, including the creation of a strategic Bitcoin reserve. These potential moves are seen as catalysts for institutional investment in Bitcoin, which could further drive the asset's value in the near term.

Large Bitcoin holders are a key factor in driving demand and price fluctuations in the market. Notable recent buyers include MicroStrategy, the prominent Bitcoin development company, and KULR, an energy management systems firm. This renewed interest has significantly reduced selling pressure, especially after the realization of substantial profits from Bitcoin’s rise toward $100,000 in December 2024. In fact, long-term holders, often considered to be "smart money," have sold over 1 million BTC since September 2024, though this behavior seems to have plateaued, according to a CoinDesk analysis.

Additionally, unrealized profit margins for traders are nearing zero, which often acts as a price floor in the cryptocurrency market during a bull run. This suggests that Bitcoin’s current price may be stabilizing before the next upward movement.

On the other hand, retail demand for Bitcoin appears to be cooling down. CryptoQuant reported that while Bitcoin’s overall demand has remained in an expansionary phase, the rate of growth has slowed significantly. Apparent demand, an on-chain metric used to measure the balance between newly minted coins and long-dormant coins moving into circulation, has dropped from 279,000 BTC in early December 2024 to just 75,000 BTC today.

For Bitcoin prices to rally significantly, CryptoQuant suggests that demand growth needs to pick up once again. Without this acceleration in demand, Bitcoin’s price may struggle to see substantial increases in the short term.