PANews reported on December 26 that according to Cryptoslate, according to CryptoQuant data, the demand for Bitcoin accumulation addresses increased significantly during December. As of December 23, these investors had a net increase of 225,280 BTC, a monthly increase of 82.6%. At the same time, the total sell-side liquidity (the number of Bitcoins available for sale) in exchanges and ETFs fell by about 590,000 BTC. It is worth noting that this easing of selling pressure is closely related to the sharp decrease of 520,000 Bitcoins ready for sale between December 22 and 23. The report also pointed out that the supply of Bitcoin in OTC counters that handle large transactions has dropped from 421,000 to 403,000, showing that investor demand is effectively absorbing selling pressure. In addition, the liquidity inventory ratio has dropped from 12 months in December to 5.5 months, further proving that the current supply is meeting investor demand at an accelerated rate.
CryptoQuant data also revealed that as of December 23, "whale" addresses holding more than 1,000 BTC sold nearly 8,600 BTC this month. However, this supply pressure was absorbed by new investors, and the number of short-term holders increased by 3% in the past week. In the past year, short-term holders have accumulated 641,789 BTC, and the total holdings have reached 3.81 million BTC, only 70,000 BTC lower than the historical high on December 15.
Although Bitcoin has pulled back 14.2% since hitting an all-time high of $108,000 on December 17, it is still in line with analysts' predictions that it will continue to rise after regaining calm. However, CryptoQuant community analyst Onatt reminded investors to remain cautious because the supply of USDT in exchanges is decreasing, while the supply of Bitcoin is increasing slightly. This trend may not indicate a long-term bearish phase, but it does indicate the possibility of further downside risk in the coming days.
