Bitcoin has surged over 5% to reach a ten-week high of $67,800 as demand for the digital asset rebounds sharply, according to the latest data from Cryptoquant. The research firm attributes the price jump to two key forces: robust buying from spot exchange-traded funds (ETFs) and continued accumulation by large investors, known as “whales.”
Demand Spike: Highest Monthly Increase Since April
Cryptoquant’s report reveals that after months of subdued activity, Bitcoin demand has bounced back significantly. Last week, the monthly demand metric rose by 177,000 BTC, the highest since April 2024. This demand surge was quickly followed by a 5% price increase, pushing Bitcoin to $67,800, a level not seen in over two months. The data underscores the critical role demand plays in sustaining Bitcoin’s upward trajectory, a pattern observed in previous price rallies.
Spot ETFs: Single-Day Purchases Hit 8,000 BTC
Spot ETFs are identified as a primary driver behind the demand surge. Recently, U.S. spot ETFs bought nearly 8,000 BTC in a single day, marking the largest daily purchase since July. During the first quarter of 2024, these funds averaged 9,000 BTC in daily purchases, which consistently supported price appreciation. If ETF buying activity persists into the fourth quarter, Bitcoin could gain further traction, especially during a period that historically brings positive seasonal trends for cryptocurrencies.
Whale Accumulation: Holdings Exceed 670,000 BTC
In addition to ETF inflows, whale accumulation is a major factor. Cryptoquant defines whales as large investors excluding exchanges and mining pools. Their combined holdings have grown to 670,000 BTC, maintaining steady year-over-year growth. This accumulation has now surpassed its 365-day moving average, a signal that in past bull markets often preceded further price increases. The ongoing whale accumulation indicates strong long-term conviction among major market participants.
Outlook: Seasonal Tailwinds Could Boost Q4 Performance
The current demand dynamics mirror the early 2024 rally, when ETF inflows of 9,000 BTC daily helped propel Bitcoin to all-time highs. If ETF activity remains robust in Q4, combined with typically favorable seasonal trends for crypto, Bitcoin may test higher resistance levels. However, investors should remain mindful of macroeconomic uncertainties and regulatory developments that could introduce volatility.