Bitcoin rises to 10-week high on institutional interest and whale accumulation

Demand for Bitcoin (BTC) has rebounded after a period of dormancy, with a significant spike in growth pushing the price above $67,000, a 10-week high, according to CryptoQuant’s latest weekly report.

Apparent demand for Bitcoin surged by 177,000 BTC last week, the biggest increase since April, pushing the price of the flagship cryptocurrency up more than 5% to $67,800. The resumption of market activity has sparked optimism among investors, despite several months of weak performance since May.

The report said strong institutional demand, increased whale activity and favorable seasonal factors combined to create a bullish environment. However, some experts caution that external factors such as regulatory developments and macroeconomic conditions could still cause fluctuations.

Institutional interests

This resurgence is largely due to increased interest and activity from institutional investors, with US spot ETFs in particular recently purchasing nearly 8,000 Bitcoin, the highest daily purchase amount since July 21st. It became.

These purchases are seen as the main factor supporting Bitcoin price momentum. In the first quarter of 2024, spot ETFs bought an average of 9,000 Bitcoin each day, increasing demand and pushing prices to new highs.

According to CryptoQuant, the increase in institutional investor activity signals a broader trend of renewed confidence in the crypto market, especially along with expectations for regulatory approval for additional spot Bitcoin ETFs.

The market is poised for further growth as institutional acquisitions continue, and Bitcoin's price has been steadily rising amid these developments.

Accumulation of whales during “Uptober”

Meanwhile, large-scale investors, also known as “whales,” are steadily accumulating Bitcoin. The total balance of Bitcoin held by whales, excluding exchanges and mining pools, has increased to 670,000 BTC.

CryptoQuant noted that Whale’s holdings have been consistently increasing over the past year and are currently above the 365-day moving average. This trend suggests that these large investors continue to accumulate Bitcoin, indicating strong confidence in long-term price appreciation.

Additionally, Bitcoin's rally coincides with periods of historically strong seasonal performance. The fourth quarter has traditionally been a favorable period for Bitcoin prices, especially during the halving period.

During the past three halvings, in 2012, 2016, and 2020, Bitcoin prices rose 9%, 59%, and 171% in the fourth quarter, respectively. So far, Q4 2024 is following a similar trajectory, with Bitcoin exhibiting a bullish trend in line with historical cycles, according to CryptoQuant.

For now, Bitcoin's recent rally has sparked renewed interest in the broader crypto market, with other digital assets also rising. The CryptoQuant report concludes that a combination of factors driving demand could keep Bitcoin on an upward trajectory in the coming weeks.

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