07 Jun

As per a recent report from CryptoQuant, large investors, often referred to as "whales," are accumulating Bitcoin at a rate reminiscent of the period before the 2020 bull market. The data from the firm indicates daily inflows of $1 billion into Bitcoin and a notable uptick in holdings by these whales, similar to patterns observed in mid-2020.

CryptoQuant also points out a surge in Bitcoin acquisitions through spot Exchange-Traded Funds (ETFs) in the United States. These ETFs, which follow Bitcoin's price but trade on conventional stock exchanges, have seen their total Bitcoin holdings in the U.S. reach record levels, signaling growing institutional investment.

In terms of Ethereum, positive indicators are evident. CryptoQuant notes an increase in Ethereum demand since May 20th, likely influenced by the recent approval of spot Ethereum ETFs in the U.S. Daily purchases by long-term holders, known as "permanent holders," have risen to 40,000 ETH.

Furthermore, CryptoQuant reveals that large investors currently possess a historic amount of Ethereum, totaling 16 million ETH. This suggests that whales view Ethereum as valuable and are actively accumulating the cryptocurrency.

Despite the optimistic outlook for Bitcoin and Ethereum, CryptoQuant warns that the growth of Tether's USDT stablecoin market cap has slowed significantly. Stablecoins like USDT are digital currencies pegged to fiat currencies such as the U.S. dollar, facilitating cryptocurrency trading. CryptoQuant suggests that a decrease in stablecoin liquidity could impede a sustained price surge for Bitcoin.

In summary, CryptoQuant's analysis offers positive insights into Bitcoin and Ethereum. However, investors should remain cautious of potential obstacles such as the deceleration in Tether growth and conduct thorough research before making investment decisions.

June 2024, Cryptoniteuae

* The email will not be published on the website.