Coin Edition -
- Large investors buying Bitcoin at pre-bull run pace.
- Spot ETFs drive record Bitcoin holdings in the U.S.
- Ethereum demand rises, whales hold record amounts.
According to a CryptoQuant weekly report, large investors, known as “whales,” are accumulating Bitcoin at a pace similar to that seen before the 2020 bull run. The firm’s data reveals daily injections of $1 billion into Bitcoin and a significant increase in holdings by these whales. This mirrors similar activity observed in mid-2020.
However, Stablecoin Liquidity needs to recover to support a sustained price rally. Tether's USDT growth has decelerated, growing at the slowest pace since February 11th. pic.twitter.com/36sfXQEuqv— CryptoQuant.com (@cryptoquant_com) June 6, 2024
Source: Cryptoquant
CryptoQuant also highlights a surge in Bitcoin purchases from spot Exchange-Traded Funds (ETFs) in the United States. These ETFs track the price of Bitcoin but trade on traditional stock exchanges. The chart shared by CryptoQuant shows that total spot ETF Bitcoin holdings in the U.S. have reached record highs, indicating growing institutional investment.
Source: Cryptoquant
Ethereum is also exhibiting positive signals. CryptoQuant reports a rise in Ethereum demand since May 20th, likely driven by the recent approval of spot Ethereum ETFs in the U.S. Daily purchases by long-term holders, or “permanent holders,” have risen to 40,000 ETH.
Adding to the bullish sentiment, CryptoQuant reveals that large investors currently hold a record number of Ethereum, totaling 16 million ETH. This suggests whales see value in Ethereum and are actively accumulating cryptocurrency.
While the outlook for Bitcoin and Ethereum appears promising, CryptoQuant cautions that Tether’s USDT stablecoin market cap growth has decelerated significantly. Stablecoins are cryptocurrencies pegged to fiat currencies like the U.S. dollar and are used to facilitate trading. CryptoQuant suggests that a lack of stablecoin liquidity could hinder a sustained price rally for Bitcoin.
Overall, CryptoQuant’s analysis paints a positive picture for Bitcoin and Ethereum. However, investors should remain mindful of potential challenges like slowing Tether growth and conduct their own due diligence before making any investment decisions.
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