Inauguration Effect? Bitcoin Whales Start Accumulating As Trump Era Begins
Bitcoin (BTC) has been trading between $101,000 and $110,000 since Donald Trump's inauguration. A report from CryptoQuant indicates that Bitcoin 'whales' have resumed accumulating BTC, with holdings increasing from 16.2 million on November 4 to 16.4 million by January 24. Whale holdings saw a growth rate rise from -0.25% to 2% between January 14 and January 17, the highest since mid-December. This accumulation is attributed to bullish developments, including the establishment of a Working Group on Digital Asset Markets by the US president, aimed at creating a regulatory framework for cryptocurrencies. Selling pressure has decreased significantly, with profit-taking dropping by 93% since December. However, overall Bitcoin spot demand has weakened, falling from 279,000 BTC in early December to 75,000 BTC recently. Analysts remain optimistic about a potential price rally, with predictions of BTC reaching $200,000 to $275,000, contingent on Federal Reserve interest rate policies. Currently, BTC trades at $106,074.
