Bitcoin Whales Buying $1B Daily: Signs of Demand Recovery?

Bitcoin whales in phone

The continuous daily inflows of substantial capital from Bitcoin wahles signify a burgeoning interest and investment in the crypto asset.

The recent CryptoQuant report has shed light on an intriguing development in the Bitcoin market. According to their findings, there’s been a notable influx of approximately $1 billion per day from new, significant investors into Bitcoin. Over the past two months, Bitcoin whales have collectively added around 70,000 bitcoins to their portfolios, marking a monthly growth rate of 4.4%. This trend underscores a growing confidence among these investors in the future performance of Bitcoin, suggesting that they anticipate its value to increase over time.

Another report from CryptocurrenciesToWatch (CTW) has drawn attention to the increasing dominance of these large investors, referred to as “whales,” in the Bitcoin market. CTW reported that whales control over 40% of the total Bitcoin supply. This growing influence is evidenced by a consistent trend since mid-March, wherein large investors have been steadily accumulating more Bitcoin.

Signs of Demand Recovery?

Bitcoin whales’ continuous daily inflows of substantial capital into Bitcoin signify a burgeoning interest and investment in the cryptocurrency. This influx of funds bolsters demand and supports the current price levels, potentially driving further upward momentum.

Moreover, the CryptoQuant report indicates a decline in the selling pressure exerted by traders, as evidenced by resetting the unrealized profit ratio to 0%. This suggests a possible equilibrium in the market dynamics, with reduced selling pressure contributing to stability and the potential for upward movement in Bitcoin prices.

In addition to the direct investment in Bitcoin, there has been a notable increase in BTC acquisitions through Spot Bitcoin ETFs in the United States. These investment vehicles have witnessed consistent inflows over the past 18 days, with a total inflow of $218 million recorded on June 6th.

While certain ETFs experienced fluctuations in daily flows, such as GBTC with a single-day outflow of $37.574 million and IBIT with a single-day inflow of $350 million, the cumulative historical net inflow for IBIT has reached an impressive $17.431 billion. This trend highlights a growing interest among investors in gaining exposure to Bitcoin through ETFs.