Institutional demand for BTC grows amid whale activity
Institutional demand for BTC grows amid whale activity
Institutional demand for Bitcoin reached unprecedented levels in 2024, driven by a significant influx of BTC to “whale” addresses. This was reported on social media by CryptoQuant CEO Ki Young Ju, who cited relevant research.
According to his data, since the beginning of the year, net inflows to whale addresses (wallets holding at least 1,000 BTC) totaled 670,000 BTC, with an additional 278,000 BTC flowing into spot ETFs.
This shows that institutional demand for Bitcoin is now twice that of retail, reflecting heightened interest from large investors.
Why Institutional Investors are Interested in Bitcoin
Bitcoin increasingly attracts institutional investors each year, as it is seen as a hedge against inflation and economic uncertainty. Companies like MicroStrategy and Tesla have begun to allocate part of their capital to Bitcoin, sparking interest from other market participants who use Bitcoin to diversify portfolios and safeguard capital from fiat currency depreciation risks.
Furthermore, the infrastructure supporting institutional investments in cryptocurrency has significantly improved. The emergence of regulated crypto exchanges, custodial storage solutions, and Bitcoin ETFs has made Bitcoin more accessible for large investors.
Previously, Ki Young Ju made a bold prediction that Bitcoin would become a fully-fledged currency by 2030.
Also read: Bitcoin rises above $70k as China's debt plan sparks open interest
