CryptoQuant experts have noted the growing number and activity of “new institutional investors.”
“We are seeing unprecedented buying pressure from a new wave of accumulation. New whales are buying Bitcoin, pushing the price up. They currently hold 1.97 million BTC. It is important to note that this is not just a result of spot Bitcoin ETF activity, as other major players are also involved,” said analyst J.A. Maartunn.
The company classifies wallets with a balance of more than 1000 BTC as “new whales”, which do not belong to miners or exchanges, and the age of the coins stored on them does not exceed 155 days.
CryptoQuant analysts also noted a decline in Bitcoin reserves on centralized exchanges to a multi-year low. The trend indicates a reduction in the liquid supply of the first cryptocurrency and points to the growing popularity of non-custodial storage, which is focused on the long term.
On October 16, the quotes of the first cryptocurrency exceeded the $68,000 mark. Bitcoin pulled most other digital assets into the “green zone”.
As the rally resumes, the cryptocurrency fear and greed index hits 72.
Bernstein analysts linked the market revival to the increased chances of Donald Trump winning the upcoming US presidential election. JPMorgan agrees with this assessment.
BlackRock CEO Larry Fink believes that Bitcoin's adoption as an alternative to gold and other commodities will continue to grow. He compared the cryptocurrency's current stage of development to the early years of the mortgage market, which is now valued at $11 trillion.
Fink emphasized that Bitcoin's growth depends more on liquidity than regulation. The influx of capital will provide increased transparency and better analytical tools. In his opinion, the crypto industry does not care who will be the next US president.
The head of BlackRock also expressed confidence in the future expansion of Ethereum's use as an investment asset.
According to a16z crypto, there are about 617 million cryptocurrency owners in the world, but only 30-60 million of them actively use their assets every month. This means that only 5-10% of cryptocurrency owners are actually involved in the ecosystem, which opens up a huge opportunity to attract the rest.
This may change with infrastructure improvements that make decentralized applications more interesting and usable.
According to Tether, the USDT stablecoin was used by 330 million crypto wallets and on-chain accounts by the end of Q3 2024. This figure does not include users of centralized exchanges, of which the company estimates there are tens of millions more.
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