Bitcoin Whales Resume Buying, Accumulate $2.75 Billion Amid Spot Demand Rebound

After months of decline, Bitcoin whales have resumed buying, accumulating approximately $2.75 billion worth of BTC over the past 60 days. This trend is seen as a positive signal for the market, indicating that well-capitalized investors believe current valuations are attractive and worth returning to.

Data from CryptoQuant shows that large holders have increased their holdings by around 43,000 Bitcoins since mid-July, while smaller 'dolphin' accounts are also growing. Glassnode's analysis notes that mid-sized holders have been steadily buying, with whales holding over 10,000 Bitcoins also accumulating.

The contraction in spot demand has been a major driver of Bitcoin's price decline, but this trend may be reversing soon. CryptoQuant's data indicates that apparent spot demand has rebounded from -206,000 Bitcoins on July 23 to around -5,000 currently, and is on the verge of turning positive for the first time since February 26.

Historically, when apparent spot demand turns from negative to positive, Bitcoin tends to rise. Within 60 days after the shift, the average gain is about 18%. However, analyst Dessislava Ianeva notes that despite some bullish indicators, market participation remains low and confidence is weak.