Inauguration Effect? Bitcoin Whales Start Accumulating As Trump Era Begins
Following the inauguration of Donald Trump on January 20, Bitcoin (BTC) has remained range-bound, trading between $101,000 and $110,000. However, a new report from CryptoQuant states that behind this regular price action, Bitcoin “whales” are quietly re-accumulating the premier cryptocurrency.
Bitcoin whales return to accumulation mode
according to ReportLarge Bitcoin holders – often referred to as Bitcoin “whales” – have re-entered the accumulation phase. Recent data shows a significant increase in the monthly growth rate of BTC held by these large investors.
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Notably, Bitcoin whale holdings increased from a -0.25% decline on January 14 to a 2% increase on January 17, marking the highest monthly growth rate since mid-December. In absolute terms, these investors’ Bitcoin holdings increased from 16.2 million on November 4 to 16.4 million as of January 24.
The surge in whale accumulation appears to be driven by some bullish developments early in the Trump administration. For example, the President of the United States has signed an executive order establishing a Digital Asset Market Working Group.
The task force is tasked with proposing a federal regulatory framework for cryptocurrencies, including stablecoins, within six months. In addition, the organization will also evaluate the possibility of establishing a national digital asset reserve, fueling speculation about a potential strategic Bitcoin reserve in the United States.
In addition to the growth in whale holdings, Bitcoin’s selling pressure has also dropped sharply since December’s massive profit-taking. This is similar to the recent Report The study found that BTC profit-taking has dropped 93% from its December peak. The report content is as follows:
In December, the price of Bitcoin approached US$100,000, and the average daily profit of Bitcoin holders reached US$10 billion. However, daily realized profits have fallen to levels around $2-3 billion in January, suggesting that market participants may have mostly sold off Bitcoin. Additionally, traders’ unrealized profit margins have fallen to near zero, a level that typically marks the price floor during bull markets.
However, the report also highlighted that overall Bitcoin spot demand has weakened over the past month, raising concerns about the possibility of another bullish rally. Specifically, Bitcoin’s demand growth rate has dropped from 279,000 BTC in early December to 75,000 BTC at the time of writing.
Analysts confident Bitcoin will rise again
Despite cooling on-chain demand, cryptocurrency analysts remain optimistic that Bitcoin prices will surge again. For example, a recent report suggestion During Trump’s presidency, BTC’s price target could be as high as $249,000.
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other Report by Bitfinex predicts that Bitcoin could rise to $200,000 by mid-year amid a mild price correction. However, many depending on How the Fed will respond to interest rate adjustments this year.
From a technical perspective, BTC’s cup-and-handle pattern project The target price is as high as $275,000. At press time, BTC was trading at $106,074, up 0.1% in the past 24 hours.
Featured image from Unsplash, chart from TradingView.com
