The on-chain analytics firm CryptoQuant has provided insight into why Bitcoin and Ethereum are showing signs of acceleration in recent times.
According to CryptoQuant, key on-chain metrics for both Bitcoin and Ethereum are looking bullish. The demand from permanent holders and whales has been on the rise for both cryptocurrencies.
For Bitcoin, HODLers have added 70,000 BTC to their wallets in the past month after a period of decline. Additionally, whales holding more than 1,000 BTC have increased their monthly demand by 4.4%. The influx of new capital from “new whales” has also contributed to the positive trend.
Similarly, Ethereum has seen an increase in demand from both permanent holders and whales following the approval of spot exchange-traded funds (ETFs) last month. Permanent holders are now making daily inflows of 40,000 ETH on average, while whale investors holding 10,000 to 100,000 ETH have reached record highs of around 16 million ETH.
Despite the positive indicators for Bitcoin and Ethereum, there is a concern about the slowdown in the growth of stablecoins, particularly Tether (USDT). While the USDT market cap has seen growth, its demand has slowed, which could impact the overall cryptocurrency sector.
In terms of price, Bitcoin is currently trading at around $70,200, up more than 4% over the past week. The price of the asset appears to be consolidating in recent times, according to charts.
Overall, the data from CryptoQuant suggests that both Bitcoin and Ethereum are experiencing increased demand from key investor groups, which could potentially lead to further price acceleration in the future.