Whales accumulate Bitcoin, driving BTC price growth
Demand for bitcoin is growing
Large investors have begun accumulating Bitcoin ahead of the inauguration of U.S. President Donald Trump. From January 14 to January 17, the monthly growth in Bitcoin holdings among large investors increased from -0.25% to +2%, marking the highest rate since mid-December. According to data from the analytics service CryptoQuant, the total volume of Bitcoin held by these large holders has risen from 16.2 million on November 4 to 16.4 million as of today.
Selling pressure in the Bitcoin market has significantly eased after holders realized profits in December. At its peak, daily realized profits reached $10 billion when Bitcoin approached $100,000. However, in January, this figure has dropped to $2–$3 billion, indicating that the wave of mass selling has likely ended. Additionally, traders' unrealized profits have declined to nearly zero, a level that typically signals a price floor during bull markets.
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Nevertheless, overall demand for Bitcoin in the spot market has slowed, and its recovery is necessary for sustained price growth. While Bitcoin demand remains in the growth zone, the growth rate has declined from 279,000 BTC in early December 2024 to 75,000 BTC today. For significant price gains, a renewed acceleration in demand is essential.
Who are whales?
In the crypto industry, whales are large investors or organizations that hold a substantial amount of cryptocurrency, most commonly Bitcoin. These investors' assets are so significant that their actions can influence the market. For instance, moving large sums of cryptocurrency from one wallet to another can cause sharp price fluctuations. Whales can include institutional investors, hedge funds, major mining pools, and even individual wealthy investors.
Whales play a key role in the cryptocurrency ecosystem, as their actions often shape market trends. They can impact liquidity, volatility, and overall price dynamics. For example, a massive sale of cryptocurrency by a whale can crash the market, while significant purchases can trigger price growth.
Many companies are now looking to acquire Bitcoin. For example, the healthcare company Semler Scientific has announced plans to raise $75 million to increase its Bitcoin holdings.
