Cryptoquant’s report reveals large bitcoin investors increasing holdings by 2% amid slowing demand. Discover insights into BTC accumulation trends, reduced selling pressure, and Ethereum’s inflation struggles.
Accumulation Trends Emerge Among Key Bitcoin Investors
Large bitcoin investors have entered a renewed phase of accumulation, according to Cryptoquant’s recent analysis. As of Jan. 17, major holders have increased their bitcoin (BTC) ownership by 2%, marking the largest monthly uptick since December 2024. This shift is attributed to evolving market dynamics and political developments, including the inauguration of President Donald Trump.
Cryptoquant’s report reveals that the total holdings of large investors have grown from 16.2 million BTC in November to 16.4 million BTC by January. Meanwhile, smaller investors reduced their bitcoin ownership from 1.75 million BTC to 1.69 million BTC during the same period.
Weakening Bitcoin Demand Despite Accumulation
Despite increased activity by large investors, the broader demand for bitcoin remains muted. Cryptoquant data shows a significant slowdown in demand growth, with apparent demand adding only 75,000 BTC in January compared to 279,000 BTC in December 2024. The report cautions that sustained price rallies may depend on renewed demand momentum.
Reduced Selling Pressure and Profit-Taking
Cryptoquant also highlighted declining selling pressure in January. While daily realized profits soared to $10 billion as bitcoin approached $100,000 in December, this figure has dropped to $2–$3 billion per day in January. The decline in realized profits and near-zero unrealized profit margins suggest reduced profit-taking, which could alleviate selling activity in the near term.
Ethereum Lags Behind Bitcoin Amid Inflation Concerns
Ethereum (ETH) continues to underperform compared to bitcoin, with ETH’s value declining 43% relative to BTC since late 2023. Cryptoquant attributes this trend to unexpected supply inflation following Ethereum’s Merge upgrade in 2022. Contrary to expectations, ETH’s total supply has risen from 120.0 million in April 2024 to 120.5 million, eroding the anticipated deflationary benefits.
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