- Bitcoin demand has grown by about 62,000 BTC per month since July.
- Large investors and ETFs are the main drivers of this increased demand.
- Whales and funds are adding to holdings at a pace of 331,000 BTC annually, a higher rate than previous years.
- Analysts identify the Trader’s Realized Price of $116,000 as a key level for triggering a potential bull market move.
- Current demand and technical indicators resemble conditions that preceded previous major rallies in late 2020 and 2024.
Demand for Bitcoin has increased sharply since July, setting up market conditions similar to previous late-year rallies. Crypto analysis firm CryptoQuant reports demand is expanding by about 62,000 BTC per month, driven mainly by large investors and exchange-traded funds (ETFs).
The report points to rising balances among major holders, known as whales, who are acquiring Bitcoin at an annualized rate of 331,000 BTC. This trend outpaces the 255,000 BTC recorded during late 2024 and the 238,000 BTC added at the end of 2020. In contrast, 2021 saw market contraction with large holders reducing their positions by 197,000 BTC.
ETFs have also accelerated their accumulation, buying 213,000 BTC in late 2024, a 71% increase in their holdings for the period. CryptoQuant suggests that funds could boost allocations again as the year ends.
On-chain data highlights the Trader’s Realized Price—$116,000—as a key level for a potential breakout. Analyst models compare spot prices to average investor costs; moving above this threshold signals a shift back into a “bull” market phase, historically resulting in rallies to valuation bands between $160,000 and $200,000.
CryptoQuant’s Bull Score Index, a measure of market momentum, recently stayed between 40 and 50. This level typically marks the start of bullish conditions, as seen when the index passed 50 at the beginning of late 2024 before Bitcoin rose from $70,000 to $100,000. With demand signals strong, traders are closely watching for a potential repeat of this pattern in the final quarter of this year.
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