Bitcoin whales are buying rapidly and retail demand is at its lowest level in three years

bitcoin remains stable at the time of writing, in an uptrend and technically close to all-time highs, if we look at how prices have evolved over the past five years. Despite the recent squeeze forcing the world’s most valuable currency to trade in spot, interesting trends are developing that point to confidence, especially among whales.

Whales are accumulating bitcoins rapidly

According to IntoTheBlock x.com/intotheblock/status/1814269766439248128″ target=”_blank” rel=”noopener nofollow”>data On July 19, whales are doubling down on their efforts. As the data shows, the number of addresses holding at least 1,000 btc are rapidly buying, obtaining more coins and pushing the figure to a two-year high. This increase in buying pressure means that whales, which mainly comprise institutions and wealthy investors, are confident in bitcoin’s long-term prospects.

Interestingly, while whales are accumulating, US bitcoin spot ETF issuers are not giving up. After the squeeze in June to early July, when prices contracted, these issuers have been acquiring more coins following the guidance of their clients.

According btc-spot” target=”_blank” rel=”noopener nofollow”>Bland ValueBlackRock is the largest issuer of spot ETFs with over $20 billion worth of btc under management. On July 19, the asset manager purchased over $102 million of the coin.

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As prices rise above $60,000, demand for btc from institutions will only increase, funneling even more capital into bitcoin ETF issuers and driving prices higher.

Why is retail demand so low despite Trump's support for cryptocurrencies?

The price of bitcoin could also rise due to politics. In the tense political campaign in the United States, Donald Trump seems to have the upper hand over the incumbent president. Trump, who has changed his stance on cryptocurrencies and even accepted bitcoin donations, plans to turn the United States into a cryptocurrency mining hub. Furthermore, rumors abound that the administration should consider making bitcoin a strategic asset if the former president takes power. If this is the case, there will be a network effect and all other countries will want to follow in the footsteps of the United States and hold btc.

However, amid the optimism, one analyst x.com/ki_young_ju/status/1813986352662282751″ target=”_blank” rel=”noopener nofollow”>observe Retail demand for bitcoin is at its lowest level in three years. Historically, major cryptocurrency bull runs have preceded a strong uptick in retail buying activity.

The fact that their action is moderate could be a cause for concern, but it could also mean that market dynamics have changed and that institutions are in charge.

Featured image from Canva, chart from TradingView