Bitcoin’s price has surged over 5% in the last 24 hours, hitting $67,800 — a level not seen in more than two months. According to the latest on-chain data from CryptoQuant, the rally is fueled by a sharp rebound in demand from U.S. spot Bitcoin ETFs and continued accumulation by large holders, commonly referred to as “whales.”
After months of subdued activity, Bitcoin demand is roaring back. The monthly demand growth reached 177,000 BTC last week — the highest since April 2024. This demand spike immediately preceded the 5% price jump, reinforcing the thesis that demand is the primary catalyst for Bitcoin’s upward momentum. CryptoQuant analysts draw parallels to previous bull cycles, where similar demand surges preceded sustained rallies.
Spot ETFs: The Demand Engine
The report highlights that U.S. spot Bitcoin ETFs have become the dominant force in absorbing new supply. On a single day this week, these funds purchased nearly 8,000 BTC — the largest daily inflow since July. For context, in Q1 2024, the same ETFs were averaging around 9,000 BTC per day, which helped propel Bitcoin from $40,000 to over $70,000. If this pace of ETF buying persists into Q4, which historically is a seasonally strong period for crypto, Bitcoin could challenge the $70,000 resistance level and potentially target new all-time highs.
ETF inflows are now being closely watched as a leading indicator. The CryptoQuant model suggests that sustained accumulation by institutional products could absorb the sell pressure from miners and long-term holders taking profits.
Whale Holdings Surpass 670,000 BTC: A Bullish Signal
Beyond ETFs, whale accumulation is another critical pillar of this rally. Data shows that large investors (excluding exchanges and mining pools) now collectively hold 670,000 BTC, with their holdings steadily climbing throughout 2024. This metric has just crossed above its 365-day moving average — a pattern that historically preceded major price breakouts. In both the 2020-2021 and 2023-2024 bull runs, whale accumulation phases began months before parabolic price moves.
“The fact that whales are not selling into strength but continuing to accumulate suggests strong conviction that current prices are still undervalued relative to future potential,” the report notes. Additionally, exchange balances continue to decline, indicating that Bitcoin is moving off exchanges into long-term storage, reducing available supply and creating upward pressure.
On-Chain Confirmation and Outlook
Long-term holder supply remains near all-time highs, while short-term holder supply is contracting — classic signs of a healthy accumulation phase. CryptoQuant’s valuation models, including the MVRV Z-score and realized cap growth, also point to room for further upside before reaching overheated territory.
However, risks remain. Macroeconomic factors such as Federal Reserve interest rate decisions, regulatory developments (including the pending SEC rulings on Ethereum ETFs), and geopolitical tensions could disrupt the momentum. The report advises traders to monitor ETF flow data daily and whale wallet activity for early signs of trend reversals.
Overall, CryptoQuant’s data paints a picture of robust demand fundamentals, with institutional money and large holders leading the charge. If current trends hold, Bitcoin may be on the cusp of a significant breakout in Q4 2024.
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