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Bitcoin reaches a 10-week peak fueled by institutional investment and accumulation by large holders.
Demand for Bitcoin (BTC) has experienced a resurgence following a period of inactivity, with a notable increase in growth propelling prices to a ten-week peak exceeding $67,000, as reported in CryptoQuant’s latest weekly analysis.
Last week, Bitcoin’s apparent demand surged by 177,000 BTC, marking the largest rise since April, which led to an over 5% increase in the flagship cryptocurrency’s price, reaching $67,800. This renewed market activity has sparked optimism among investors after several months of lackluster performance since May.
The report indicates that a mix of robust institutional demand, heightened whale activity, and favorable seasonal trends has fostered a bullish atmosphere. Nevertheless, some analysts warn that external influences, such as regulatory changes or macroeconomic factors, could still introduce volatility.
Institutional interest
The revival is primarily linked to increased institutional interest and activity, especially through spot ETFs in the US, which recently acquired nearly 8,000 Bitcoin — the highest daily acquisition since July 21.
These acquisitions are viewed as a significant factor behind Bitcoin’s price momentum. In the first quarter of 2024, spot ETFs averaged daily purchases of 9,000 Bitcoin, contributing to heightened demand and driving prices to new highs.
According to CryptoQuant, the uptick in institutional activity reflects a broader trend of renewed confidence in the cryptocurrency market, particularly with the anticipation of regulatory approvals for additional spot Bitcoin ETFs.
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As institutional investments persist, the market is set for further expansion, with Bitcoin’s price consistently rising in light of these developments.
Whale accumulation amid ‘Uptober’
Simultaneously, large-scale investors, commonly known as “whales,” have been gradually accumulating Bitcoin. The total amount of Bitcoin held by whales, excluding exchanges and mining pools, has reached 670,000 BTC.
CryptoQuant observed that whale holdings have been steadily increasing over the past year and are currently above the 365-day moving average. This pattern indicates that these significant investors are continuing to gather Bitcoin, reflecting strong confidence in long-term price appreciation.
Moreover, Bitcoin’s rally coincides with what has historically been a period of robust seasonal performance. The fourth quarter, especially in a halving year, has traditionally been a favorable time for Bitcoin’s price.
In the last three halving years —2012, 2016, and 2020 — Bitcoin prices rose by 9%, 59%, and 171%, respectively, in Q4. So far, Q4 2024 has followed a similar path, with Bitcoin exhibiting a bullish trend consistent with previous cycles, according to CryptoQuant.
Currently, Bitcoin’s recent surge has rekindled interest in the wider cryptocurrency market, with other digital assets also experiencing gains. The CryptoQuant report concludes that the factors driving demand could continue to support Bitcoin’s upward movement in the weeks ahead.
The post Bitcoin’s climb to 10-week high driven by institutional interest, whale accumulation appeared first on CryptoSlate.
