Bitcoin’s Price Momentum Is Shifting: Are Whales Driving the Growth?

Large investors are driving Bitcoin’s price growth, increasing their holdings.
Selling pressure has eased, with realized profits dropping in January.
Bitcoin’s demand growth has slowed, impacting the possibility of a sustained rally.

Since the U.S. election, Bitcoin’s market dynamics have shifted, with large investors, or “whales,” leading price growth. CryptoQuant data shows that whale holdings increased from 16.2 million BTC to 16.4 million BTC during this period. At the same time, smaller investors reduced their positions from 1.75 million BTC to 1.69 million BTC.

Large investors are driving Bitcoin price gains since the US election.

Holdings grew from 16.2M to 16.4M BTC.

Meanwhile, small investors reduced theirs from 1.75M to 1.69M. pic.twitter.com/jwu88GLJl7

— CryptoQuant.com (@cryptoquant_com) January 25, 2025

This accumulation by large holders has eased selling pressure on Bitcoin. In December 2024, Bitcoin holders earned up to $10 billion in profits, aligning with the token’s surge toward $100,000. However, this profit-taking slowed in January, with daily realized profits now ranging between $2 billion and $3 billion.

Unrealized profit margins have also dropped close to zero, a level that often signals a price floor during bullish market cycles.

Slowing Demand Could Impact Bitcoin’s Momentum

Despite reduced selling pressure, Bitcoin’s spot demand growth has slowed. From a high of 279,000 BTC in early December 2024, demand dropped to 75,000 BTC by January 2025.

While interest in Bitcoin remains steady, this deceleration could hinder the token’s ability to maintain its upward trajectory. Without a rebound in demand, Bitcoin’s price may struggle to break through key resistance levels.

Whale Activity Reflects Price Correlation

Bitcoin’s whale activity continues to play a crucial role in its price movements. As the token’s price climbed to $85,000, whale holdings surged, suggesting institutional investors or high-net-worth individuals were positioning themselves for future growth.

CryptoQuant data further supports this trend, with a 30-day percentage change in whale holdings aligning closely with Bitcoin’s price trends. This correlation underscores the influence of large holders in driving market momentum.

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