The Bitcoin scene is buzzing with some interesting updates! While the sell-off pressure has taken a backseat, the demand for Bitcoin isn't exactly skyrocketing either. Big-time investors are tiptoeing back into the game, slowly reaccumulating their digital gold.
Since the new U.S. president took the stage, Bitcoin's spot demand has hit the brakes a bit. For those hoping for another price rally, this slow growth in demand isn't quite the turbo boost they were wishing for. But hey, there's a silver lining! Despite the slow pace, large investors are quietly stocking up, setting the stage for potentially exciting moves ahead.
Imagine Bitcoin demand as a slow-simmering pot. It's still growing, but not at the boiling pace we saw before. Back in early December 2024, the expansion was piping hot at 279,000 BTC, but now it's simmered down to 75,000 BTC. Similarly, the demand momentum has cooled from 1.7 million to a mere 0.1 million. For Bitcoin to shoot for the moon again, this demand growth needs to pick up some steam.
Interestingly, right before President Donald Trump’s inauguration, Bitcoin demand from large investors went on a mini-spree. From January 14 to 17, their holdings jumped from a downtrend of -0.25% to a hearty +2%, marking a peak not seen since mid-December.
Data shows that big players have been the heartbeat of Bitcoin's demand and price action since the presidential elections. They've been bulking up their holdings, while smaller investors have been trimming theirs. From November 4 to January 24, big investors' stash grew from 16.2 million BTC to 16.4 million, while smaller investors' holdings slid from 1.75 million to 1.69 million BTC.
With the big guns driving demand and price, the sell-off pressure has eased considerably. Many cashed in during the December rally, raking in as much as $10 billion when Bitcoin flirted with the $100,000 mark. Nowadays, daily profits have cooled to between $2 billion and $3 billion, suggesting that the selling frenzy has calmed down. The traders' unrealized profits are also at a point where prices often find their footing.
So, what's the takeaway? As large investors quietly gather their coins and selling pressure fades, the stage is set for Bitcoin's next chapter. Keep your eyes peeled for what happens next in this ever-evolving crypto saga!
