Ethereum
Bitcoin and Ethereum price rally far from over: CryptoQuant By Investing.com
Significant investments from major holders and institutional investors have boosted prices, fueling a broader market rally. A CryptoQuant report highlights this rise as a key factor in a steady rise in prices in the crypto market.
The report discusses several key factors contributing to the increase in demand for Bitcoin. First, total balances held by permanent holders and large investors grew faster. Over the past 30 days, permanent Bitcoin holders have accumulated 70,000 Bitcoins, marking the largest increase since late April.
According to CryptoQuant analysts, daily inflows of new large Bitcoin investors reached $1 billion, paralleling the period of massive accumulation seen in 2020 before Bitcoin’s rally from $10,000 to $70,000.
Additionally, there has been an increase in Bitcoin purchases from spot ETFs in the United States, with total holdings increasing from 819,000 on May 1 to 859,000 currently.
CryptoQuant said these purchases have been a significant source of demand this year. Additionally, selling pressure from traders has eased, with the unrealized profit rate reset to 0%. This indicates that traders’ sell-offs are exhausted.
The on-chain data analytics firm’s report reveals that demand for Ethereum has also increased since May 20, following the approval of spot ETH ETFs in the United States. The daily purchase of ETH from permanent holders averages 40,000 ETH after the ETF approval, compared to 5,000 ETH before the announcement.
The report suggests that large investors’ total holdings of ETH have also increased, reaching 16 million ETH, up from 15.4 million before the ETF’s approval and 14.9 million at the start of 2024.
The report concludes that despite positive trends in Bitcoin and Ethereum, stablecoin liquidity has yet to return to its growth trajectory, which is key to supporting a broader price rally.
CryptoQuant warns that Tether’s USDT market cap growth, an indicator of new liquidity in crypto markets, continues to decelerate, now increasing at the slowest pace since February 11.