Bitcoin whales are once again ramping up their purchases, indicating a positive outlook for Bitcoin’s future price. Data from CryptoQuant shows that the growth in Bitcoin holdings among large investors has surged in mid-January, following a temporary dip in early 2025. This uptick in accumulation comes as the cryptocurrency market responds to U.S. President Donald Trump’s inauguration and expectations that his administration will introduce pro-crypto policies, including a potential strategic reserve for Bitcoin.
Bitcoin whales, or large investors, have always been a significant force driving Bitcoin’s price and market movements. According to CryptoQuant, the monthly growth rate of Bitcoin holdings by these large investors accelerated from a slight decline of -0.25% on January 14 to a more robust +2% by January 17. This marks the highest growth rate since mid-December 2024.
The shift towards increased accumulation among large investors is seen as a key driver of demand, with institutional players, such as Bitcoin development firm MicroStrategy and energy management systems company KULR, making significant purchases. This trend comes after a period of profit-taking in early January, where some Bitcoin holders capitalized on the asset’s price rally, which had seen Bitcoin approach $100,000 in December 2024.
With large investors returning to buy, selling pressure for Bitcoin has notably reduced. The market had previously witnessed days of large profit realization, with daily profits peaking at approximately $10 billion as Bitcoin surged toward $100,000 in late 2024. According to analysis from CoinDesk, long-term Bitcoin holders, often referred to as “smart money,” had offloaded more than 1 million BTC since September 2024. However, this behavior seems to have plateaued, and the market is now reaching a point of stabilization.
Interestingly, Bitcoin’s unrealized profit margins are now nearing zero, which, in the world of cryptocurrency, often signifies a potential price floor during a bull market. This could suggest that Bitcoin has reached a stable level before the next major price movement, whether upward or downward.
While whale activity is picking up, retail demand for Bitcoin appears to have cooled off. According to CryptoQuant’s latest report, the growth of apparent demand — a metric used to measure the balance between Bitcoin’s newly minted coins and its inactive supply — has slowed down. In early December 2024, the apparent demand for Bitcoin was rising rapidly, with approximately 279,000 BTC entering circulation. However, by mid-January, this number had decreased significantly to only 75,000 BTC.
Apparent demand is an important on-chain indicator, as it helps gauge how much new Bitcoin is entering the market compared to coins that have been dormant for over a year. CryptoQuant emphasized that for Bitcoin prices to rally significantly, demand growth must accelerate once again. This signals that while whales are actively buying, there is still a need for a renewed surge in retail interest and trading volume to drive prices higher in the near term.
Much of the optimism surrounding Bitcoin’s future has been fueled by the anticipation of Trump’s presidency and the potential pro-crypto stance he could take. Traders are expecting that Trump’s administration may introduce policies that are favorable to digital assets, including the creation of a national Bitcoin reserve. This could encourage more institutional investment into Bitcoin, further supporting its long-term price growth.
Despite the slowdown in retail demand, institutional capital has proven to be a key factor in Bitcoin’s price trajectory, and the increased accumulation by large investors aligns with expectations of a positive market environment in 2025. If the market can maintain its current stability and attract more institutional participation, Bitcoin could be poised for another rally, potentially surpassing its previous all-time highs.
Bitcoin’s market dynamics are currently characterized by a slowdown in retail demand, but the activity from large investors, or whales, is a strong indicator that the market is entering an accumulation phase. While the price may remain relatively stable in the short term, the potential for future growth hinges on the acceleration of demand from both retail and institutional investors.
The market will be watching closely to see how the Bitcoin ecosystem reacts to Trump’s presidency and any regulatory changes he may propose. If the demand for Bitcoin picks up again, particularly among retail investors, the cryptocurrency could be in for another significant price rally.
As of now, the stage appears set for continued growth, with Bitcoin whales leading the charge in accumulating more of the asset, providing a solid foundation for the next wave of market movements.
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