Bitcoin has surged over 5% to $67,800, driven by increased demand from spot ETFs and substantial accumulation by large investors (whales). Cryptoquant reports a monthly demand increase of 177,000 bitcoin, marking the highest since April 2024. Key drivers include significant ETF purchases and consistent whale acquisitions, presenting a positive outlook for bitcoin’s price trajectory.

Bitcoin experienced a remarkable price surge of over 5%, reaching a height of $67,800, its highest in ten weeks. This increase is primarily attributed to a notable rise in demand for the cryptocurrency, driven by significant activity in spot exchange-traded funds (ETFs) and substantial accumulation of bitcoin by large investors, commonly referred to as “whales.” According to the latest research conducted by Cryptoquant, the demand for bitcoin has seen a resurgence following a period of relative stagnation. During the preceding week, monthly bitcoin demand rose by 177,000, marking the most significant increase since April 2024. This surge in demand directly contributed to the 5% elevation in bitcoin’s value. The data highlights the integral role that demand plays in enabling bitcoin’s price to sustain an upward trend, echoing patterns observed in earlier price increases. The report from Cryptoquant identifies spot ETFs as a pivotal factor driving the demand growth. Recently, U.S. spot ETFs achieved a remarkable feat by acquiring nearly 8,000 bitcoin within a single day, representing the largest daily purchase since July. Throughout the first quarter of 2024, these funds averaged a daily acquisition of 9,000 bitcoin, further bolstering the price rise. If this trend of ETF activity continues into the fourth quarter of 2024, there is potential for bitcoin’s price to gain additional momentum, particularly as this period historically aligns with favorable seasonal trends for the cryptocurrency. Moreover, Cryptoquant emphasizes the significance of whale accumulation in the current market landscape. Whales, defined as substantial investors not affiliated with exchanges or mining pools, have increased their holdings to 670,000 bitcoin, exhibiting consistent annual growth. This accumulation has surpassed its 365-day moving average, projecting a favorable outlook for bitcoin’s price trajectory and reflectively resembling conditions of previous bull markets.

The cryptocurrency market has been characterized by volatility and fluctuating demand, particularly for Bitcoin, which is the foremost digital asset. Recent developments indicate a renewed interest in Bitcoin, particularly from institutional investors and high-net-worth individuals. The emergence of spot exchange-traded funds (ETFs) in the U.S. has provided a new avenue for investors to gain exposure to bitcoin, thereby invigorating interest and investment in this digital asset. The role of large investors or “whales” in market dynamics is critical, as their substantial purchases can significantly influence price movements. Understanding these market trends is essential for comprehending Bitcoin’s recent price performance.

In summary, Bitcoin’s recent price surge to $67,800 can be attributed to a rekindled demand propelled by spot ETFs and whale accumulation. Cryptoquant’s data illustrates that these factors not only support current price levels but also hold potential for future increases, particularly if favorable market conditions persist into the latter part of the year. Such dynamics underscore the importance of monitoring institutional involvement and investor sentiment as key indicators of price movements in the cryptocurrency realm.

Original Source: news.bitcoin.com

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