Bitcoin trading below $60,000 has sparked a wave of accumulation by whales and long-term holders. According to CryptoQuant analysts, these big players increased their Bitcoin balances by 6.3% monthly, despite the cryptocurrency being more than 21% below its peak price of $73,373 in March. This surge in accumulation is the fastest since April 2023 when Bitcoin was trading around $30,000. The activity of whales has helped support Bitcoin’s price amidst sell pressure in the market.
Recent events, such as federal authorities in Germany and the U.S. moving large amounts of BTC to centralized exchanges and the announcement of customer repayments by the defunct exchange Mt. Gox, have flooded the market with new Bitcoin supply, causing the price to slump.
On-chain indicators suggest that Bitcoin whales are holding onto their assets instead of selling, indicating a potential bottom around the $56,000 to $59,000 range. However, a rally from this local bottom will depend on improved liquidity from stablecoin minting. CryptoQuant points out that Bitcoin typically sees higher prices when stablecoins like Tether’s USDT increase token minting, but recent weeks have seen a lull in USDT’s market cap. It remains uncertain when stablecoins will resume regular minting, which is crucial for raising crypto liquidity levels.