Bitcoin whales, or large holders, have resumed purchasing more of the asset after a brief period of profit-taking earlier in January, according to CryptoQuant data.
The percentage growth in bitcoin holdings of these large investors surged from -0.25% on January 14 to +2% on January 17, marking the highest monthly increase since mid-December. This uptick coincides with the recent political changes in the U.S., with traders speculating that President Donald Trump’s pro-crypto policies and plans to build a strategic bitcoin reserve could attract more institutional capital into the market.
Large bitcoin holders, often referred to as “smart money,” have been a significant driver of BTC demand and price movement. Major recent buyers include Bitcoin development firm MicroStrategy and energy management company KULR. As a result, the selling pressure for bitcoin has been substantially reduced, especially after the asset hit near $100,000 in December, with daily profits reaching up to $10 billion.
Since September, long-term holders, who typically sell at higher prices, have offloaded over 1 million BTC, but this behavior seems to have bottomed out, according to CoinDesk’s analysis. The unrealized profit margins for traders have now nearly leveled off, which in crypto markets often suggests a price floor, signaling potential stability before the next major price movement.
However, CryptoQuant reports that retail spot demand for bitcoin appears to be slowing down. The firm notes that while bitcoin’s demand is still in “expansion territory,” the rate of expansion has significantly dropped, from 279K BTC in early December 2024 to just 75K BTC today. For prices to see a substantial rally, CryptoQuant suggests that demand growth must pick up again.
