Bitcoin Whales Begin ‘Accumulation Phase’ After Trump’s Inauguration, CryptoQuant Observes.

Bitcoin’s large investors, commonly referred to as “whales,” are returning to the market to accumulate more BTC after a brief period of profit-taking in early January, according to data from CryptoQuant.

The growth in bitcoin holdings by these major investors surged from a negative rate of -0.25% on January 14 to a positive +2% on January 17, marking the highest monthly growth rate since mid-December. This uptick in purchasing activity coincides with the beginning of President Donald Trump’s term, with traders anticipating his pro-crypto policies and plans for a strategic bitcoin reserve, which could attract institutional capital in the short term.

Whales are crucial to driving BTC demand and influencing price movements. Major recent buyers include MicroStrategy, a company focused on bitcoin, and KULR, a leader in energy management systems. As a result, the selling pressure on bitcoin has significantly decreased, especially after the cryptocurrency’s price approached $100,000 in December, which saw daily profits as high as $10 billion.

Long-term bitcoin holders, often seen as “smart money,” have sold over 1 million BTC since September, but this trend appears to have slowed down, suggesting the market may be reaching a bottom. Additionally, unrealized profit margins for traders are approaching zero, which typically serves as a price floor during bull markets, indicating stability before any significant price movement.

However, retail demand for bitcoin seems to be cooling, with CryptoQuant noting that while bitcoin’s apparent demand is still expanding, the pace of growth has slowed down from 279K BTC in early December to 75K BTC currently. For significant price rallies to occur, the firm believes that demand growth must accelerate once again.