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- Bitcoin whales and permanent holders have been scooping up over $1 billion worth of BTC daily as demand accelerates after a sharp dip in mid-May, a new report has revealed.
- The report also posits that this group is unlikely to dump on the market again as their unrealised profit ratio has reset to 0%.
Bitcoin whales and permanent holders have awoken and are splashing a billion dollars daily on average, according to a new report, as BTC retested $72,000 in the past day.
BTC trades at $71,220, gaining marginally over the past day as trading volume rose by 15%. The top crypto hit an intra-day low of $70,300 before picking pace and accelerating to a monthly high of $71,875. It has since lost some of its momentum and dipped by 1% in the past hour. Bitcoin trades 3.6% higher on the weekly chart and 11.6% higher on the monthly chart.
According to Crypto Quant, BTC whales are playing a significant role in the crypto’s recent surge. As BTC raced to a new high in mid-March, demand from permanent holders and the total whale holdings shot to new highs. However, after BTC hit its ATH, many of the whales sold off and took profits, and the trend has been decreasing since then.
Data from Crypto Quant shows that the trend stabilised in early May and has been gradually picking up since then. In the past month, permanent holders have accumulated over 70,000 BTC.
One key avenue for BTC accumulation for whales has been the Bitcoin ETFs. As Crypto News Flash reported this week, inflows in the ETFs hit $880 million, the second-highest single-day record ever, and followed up with over $400 million the next day.
“The total holdings of spot ETFs in the USA have grown from 819K on May 1st to 859K currently. The purchases of Bitcoin from ETFs have so far this year been a meaningful source of demand,” the report states.
Bitcoin to New All-Time High
Crypto whales are critical in the industry as they scoop up tokens at unprecedented rates. However, they come with the risk of dumping on the market and suppressing the price.
Crypto Quant says Bitcoin doesn’t face this risk for now because the whales have already sold off their tokens and finished taking profits.
The crypto data insights firm stated:
There should be much lower selling pressure from traders now as unrealized profits are low, 3%, compared to early March, 69%. Heavy selling has been exhausted according to this indicator.
With the backing of deep-pocketed investors, Bitcoin is set to retest its all-time high in the near future. According to Roverk Kiyosaki, it could even surge fivefold by August. The famous author and financial guru says, ” I am confident Bitcoin will hit $350,000 sometime in 2024.”
