Inauguration Effect? Bitcoin Whales Start Accumulating As Trump Era Begins – Harris International Group LLC HIG Consortium

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After Donald Trump’s inauguration on January 20, Bitcoin (BTC) remained within a range, trading between $101,000 to $110,000. However, a new report from CryptoQuant suggests that behind this routine price action, Bitcoin “whales” have quietly returned to accumulating the leading cryptocurrency.

Bitcoin whales are back in accumulation mode

According to a reportlarge BTC holders – commonly referred to as Bitcoin “whales” – have returned to the accumulation phase. Recent data shows a significant spike in the monthly percentage growth of BTC holdings among these large investors.

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Notably, Bitcoin whale holdings increased from a -0.25% decline on January 14 to a 2% growth by January 17, representing the highest monthly growth rate since mid-December. In absolute terms, these investors’ Bitcoin holdings rose from 16.2 million on November 4 to 16.4 million as of January 24.

The increase in whale accumulation appears to have been driven by several bullish developments early in the Trump administration. For example, the US President has already signed an executive order to create a working group on digital asset markets.

This working group is tasked with proposing a federal regulatory framework for cryptocurrencies – including stablecoins – within six months. In addition, the group will evaluate the potential creation of a national stockpile of digital assets, raising speculation about a potential US Strategic Bitcoin Reserve.

Along with the growth in whale holdings, Bitcoin selling pressure has declined sharply since big profit-taking in December. This is in line with the latter a report Which found that Bitcoin profit taking has fallen by 93% from its peak in December. The report stated the following:

Bitcoin holders made daily profits of up to $10 billion as Bitcoin approached $100,000 in December. However, daily profits generated fell to levels between $2 billion and $3 billion in January, suggesting that market participants may have finished selling Bitcoin for the most part. Furthermore, traders’ unrealized profit margins fell near zero, a level that typically represents the price floor during bull markets.

However, the report also highlights that overall spot demand for Bitcoin has weakened over the past month, raising concerns about the potential for another bullish rally. Specifically, the growth rate of demand for Bitcoin has fallen from 279,000 BTC in early December to just 75,000 BTC at the time of writing.

Analysts are confident of another BTC rally

Despite the decline in on-chain demand, cryptocurrency analysts remain optimistic about another significant rise in Bitcoin prices. For example, a recent report Suggested That BTC could target a price of up to $249,000 during a Trump presidency.