PANews reported on December 26 that, according to CryptoQuant data, the demand for Bitcoin accumulation addresses significantly increased during December. As of December 23, these investors net accumulated 225,280 BTC, marking a monthly increase of 82.6%. Meanwhile, the total seller liquidity (the amount of Bitcoin available for sale) on exchanges and ETFs decreased by approximately 590,000 BTC. Notably, the easing of this selling pressure is closely related to a sharp drop of 520,000 Bitcoin available for sale between December 22 and 23. The report also noted that the Bitcoin supply on OTC desks handling large transactions fell from 421,000 to 403,000, indicating that investor demand is effectively absorbing the selling pressure. Additionally, the liquidity inventory ratio dropped from 12 months in December to 5.5 months, further proving that the current supply is meeting investor demand at an accelerating pace.
CryptoQuant data also revealed that as of December 23, 'whale' addresses holding over 1,000 BTC sold nearly 8,600 BTC this month. However, this supply pressure was absorbed by new investors, with the number of short-term holders increasing by 3% over the past week. In the past year, short-term holders have accumulated 641,789 BTC, with a total holding of 3.81 million BTC, which is only 70,000 BTC lower than the all-time high of December 15.
Despite Bitcoin's 14.2% pullback since reaching an all-time high of $108,000 on December 17, it still aligns with analysts' predictions that, after a period of calm, it will continue to rise. However, CryptoQuant community analyst Onatt advises investors to remain cautious, as the supply of USDT on exchanges is decreasing while the supply of Bitcoin is slightly increasing. This trend may not necessarily indicate a long-term bearish phase, but it does suggest a possibility of further downside risk in the coming days.
