Bitcoin’s largest holders, or “whales,” have returned to buying more of the asset after a period of profit-taking in early January, according to data from CryptoQuant.
The monthly percentage increase in the bitcoin holdings of these major investors has surged from -0.25% on January 14 to +2% on January 17, marking the highest growth rate since mid-December. This resurgence in buying activity comes on the heels of President Donald Trump’s inauguration, with traders speculating that his administration’s pro-crypto policies and potential plans to build a strategic bitcoin reserve could drive institutional capital into the market.
Whales continue to play a crucial role in driving demand for bitcoin. Recent large buyers include MicroStrategy, a bitcoin-focused company, and energy management systems provider KULR. As a result, selling pressure on bitcoin has lessened significantly, especially after the asset neared $100,000 in December, leading to daily profits reaching up to $10 billion.
Long-term holders, often regarded as “smart money,” have sold over 1 million BTC since September, but this trend now appears to have slowed down, signaling a potential bottom in the market. Meanwhile, unrealized profit margins for traders are nearing zero, which historically serves as a support level in bull markets, suggesting that bitcoin may be stabilizing before the next major price movement.
However, retail demand for bitcoin appears to be cooling, with CryptoQuant noting a slowdown in apparent demand from 279K BTC in early December to 75K BTC at present. For bitcoin prices to see significant rallies, the firm believes demand growth must once again pick up pace.
