Increased Demand for Bitcoin Driven by Spot ETFs and Whales, Onchain Analytics Firm Reports
The demand for bitcoin has surged in recent days, leading to a significant rally in its price, according to onchain analytics firm CryptoQuant. The increased buying by both spot bitcoin ETFs and whales has played a key role in driving up demand for the popular cryptocurrency.
Last week, bitcoin demand reached a monthly growth of 177,000 bitcoin, the highest reading since late April. This spike in demand helped push the price of bitcoin to just under $68,000, marking a ten-week high.
Spot bitcoin ETFs have been buying close to 8,000 bitcoin a day, the highest level of daily purchasing since July 21. CryptoQuant believes that if ETF demand continues to accelerate, it could further boost bitcoin prices in the last quarter of 2024.
In addition to ETFs, whales have also been accumulating bitcoin, with the group now holding approximately 670,000 bitcoin. This accumulation is above the 365-day moving average, which CryptoQuant sees as a positive sign for prices.
Furthermore, seasonal factors are also working in bitcoin’s favor. Historically, bitcoin has performed well in the fourth quarter during a bull cycle, especially in halving years when mining rewards are reduced by 50%. In 2012, 2016, and 2020, halving years saw significant price increases for bitcoin, and CryptoQuant believes that 2024 is following a similar pattern.
Overall, the trends are very positive for bitcoin prices, with the increased buying by spot bitcoin ETFs and whales contributing to heightened demand. As we head into the last quarter of 2024, all eyes will be on how these factors continue to impact the price of bitcoin.
