Bitcoin Demand Growth Slows, But Large Investors Ramp Up Accumulation

Bitcoin’s market dynamics are shifting. While overall spot demand growth has slowed significantly since the U.S. presidential inauguration, large investors have entered an accumulation phase, steadily increasing their holdings.

This comes at a time when sell pressure has declined, and realized profits have reached low levels, signaling a potential consolidation period for the leading cryptocurrency.

Spot Demand Growth Cools

Data from CryptoQuant highlights a notable slowdown in Bitcoin spot demand growth.

Between early December 2024 and now, the rate of expansion in apparent demand has fallen sharply, dropping from 279,000 BTC to just 75,000 BTC.

Similarly, demand momentum has decreased from 1.7 million BTC to 100,000 BTC during the same period.

Spot demand is a key driver of Bitcoin’s price movements, and the current sluggishness has been a factor in preventing a significant rally.

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This deceleration suggests that the market may be in a wait-and-see phase, as traders assess the next potential catalyst for movement.

While spot demand has slowed, large investors have been quietly increasing their Bitcoin holdings.

Between January 14 and 17—days leading up to President Donald Trump’s inauguration—this cohort boosted their monthly holdings growth rate to +2%, the fastest pace recorded since mid-December.

Since the U.S. election on November 4, large investors’ Bitcoin holdings have grown from 16.2 million BTC to 16.4 million BTC, adding 200,000 BTC to their wallets.

In contrast, smaller investors have reduced their holdings from 1.75 million BTC to 1.69 million BTC over the same timeframe.

The shift highlights the contrasting strategies of market participants. While retail investors appear cautious, large players are seizing the opportunity to accumulate, positioning themselves for potential future gains.

Another factor contributing to market stability is the decline in selling activity. Realized daily profits, which peaked at $10 billion in December when Bitcoin hit $100,000, have now dropped to between $2 billion and $3 billion.

CryptoQuant analysts observed that traders’ realized profit margins, which were as high as 60% during Bitcoin’s rally, have now fallen close to zero.

This reduction in profit-taking suggests that the market has entered a phase of reduced sell pressure, often a precursor to price stabilization.

What Next for Bitcoin?

The data paints a picture of a market in transition. Large investors are steadily accumulating Bitcoin, while retail traders remain less active.

With sell pressure subsiding and realized profits at lower levels, the market appears to be entering a consolidation phase.

Although spot demand growth is currently subdued, the ongoing activity from institutional-sized investors could signal renewed optimism.

Whether this accumulation will translate into a broader market rally remains uncertain, but for now, Bitcoin’s market participants are adjusting to a slower-paced environment.

The next major move will likely depend on the return of robust spot demand growth.

Until then, Bitcoin remains in a holding pattern, with large investors quietly preparing for what’s next.

At the time of writing, Bitcoin was trading at $104,883, reflecting a 1.85% drop over the past 24 hours, based on data from CoinMarketCap.