CryptoQuant Report: Bitcoin Institutional Demand at New High, Driven by Whale Activity

A recent report by CryptoQuant reveals that institutional demand for Bitcoin has reached unprecedented levels in 2024, with large “whale” accounts driving the trend.

CryptoQuant CEO Ki Young Ju noted that institutional self-custodial wallets now hold twice the Bitcoin of retail wallets, reflecting heightened demand from major financial players.

Bitcoin Institutional Inflows Drive Demand

According to analysis by Ki Young Ju shared on X, whale accounts—a term for wallets with substantial cryptocurrency holdings—saw a net inflow of 670,000 BTC over the past year.

#Bitcoin’s institutional demand is booming in 2024.

–Since January, net inflows have reached approximately 278,000 #BTC, with retail investors accounting for 80% of these inflows.

–However, over the past year, whale addresses holding at least 1,000 BTC—excluding #Crypto… pic.twitter.com/1jmCCgONiX

— Coinwaft (@coinwaft) October 29, 2024

This surge in whale activity has contributed significantly to Bitcoin’s institutional demand, with large players increasingly seeing the asset’s long-term potential.

Data from IntoTheBlock supports this trend, showing that around 40% of Bitcoin’s supply is now concentrated in whale accounts.

Japanese investment firm Metaplanet has recently joined the ranks of Bitcoin whales, increasing its holdings by 156.7 BTC.

This acquisition has pushed its total reserves to over 1,018 BTC, worth more than $70 million.

Bitcoin ETFs Attract Growing Institutional Interest

The popularity of Bitcoin ETFs has continued to rise, with asset managers deepening their BTC holdings.

An October 24 CryptoQuant analysis of SEC 13F filings revealed that U.S.-traded spot Bitcoin ETFs now hold around 193,000 BTC, valued at over $13 billion. This represents about 20% of the total Bitcoin held in such funds.

BlackRock’s iShares Bitcoin Trust (IBIT) currently holds the largest institutional Bitcoin allocation.

Other key institutional players, including Millennium Management, Susquehanna International Group, and Goldman Sachs, have also expanded their BTC holdings through spot ETFs.

Top #Bitcoin ETF Holders of Q1 (updated again):

1. Millennium Management ($1.8b)
2. Susquehanna ($1.1b)
3. Horizon Kinetics ($989m)
4. Bracebridge ($404m)
5. Boothbay ($303m) pic.twitter.com/5GPnC6FlXe

— Julian Fahrer (@Julian__Fahrer) May 16, 2024

Millennium Management, in particular, leads U.S. institutions with nearly 19,000 BTC held via these ETFs.

The rise in institutional ETF holdings highlights Bitcoin’s appeal as a reliable investment and reflects a broader trend of mainstream financial institutions embracing crypto assets.

Bitcoin Price Performance and Market Impact

This institutional momentum has also impacted Bitcoin’s broader market performance, as seen in recent price and trading trends.

Bitcoin’s price rallied sharply, rising 4% over the last 24 hours to reach $71,396, peaking at a five-month high of $71,675.

As Bitcoin’s price surged, its market cap topped $1.4 trillion, and trading volume spiked by 110% to $47 billion daily.

Market analysts are closely monitoring the next resistance level of $72,500, with optimism bolstered by rising institutional inflows and macroeconomic factors.

With the U.S. election approaching, potential pro-crypto policy shifts are generating further interest in Bitcoin’s performance.

This recent rally aligns with historical fourth-quarter performance trends, particularly in post-halving years.

BTC AVERAGE FOR Q4 IS +88% 🚀

SO MUCH HIGHER 🦄 pic.twitter.com/zKvD8BXlxB

— Shibo (@GodsBurnt) September 23, 2024

In previous fourth quarters following Bitcoin’s halving events in 2012, 2016, and 2020, Bitcoin saw price increases of 9%, 59%, and 171%, respectively.

This year, 2024, appears to follow the same bullish trajectory, in sync with these historical patterns.