Bitcoin trading below $60,000 has incentivized whales to stockpile the cryptocurrency in hopes of higher prices.

CryptoQuant analysts reported that Bitcoin (BTC) whales and long-term holders increased their balances at a 6.3% monthly rate, indicating more demand for the cryptocurrency despite a market decline. BTC is more than 21% below its peak price of $73,373, seen in March, and smart money is capitalizing on lower prices.

According to the blockchain analytics firm, it’s the fastest accumulation spree since April 2023, when Bitcoin traded around $30,000. The report released on Wednesday also highlighted whale activity bolstering BTC’s price in the face of sell pressure introduced in the last two weeks. 

New BTC supply flooded the market after federal authorities in Germany and the U.S. moved thousands of tokens to centralized exchanges like Coinbase and Kraken. BTC also slumped when defunct exchange Mt. Gox announced customer repayments roughly 10 years after one of the largest crypto hacks ever. 

On-chain indicators to watch for Bitcoin pump

CryptoQuant noted that Bitcoin whales are less likely to liquidate assets since the drop below $60,000. The price movements between $56,000 and $59,000 could also signal an early bottom. Still, a rally from this potential local bottom depends on improved liquidity tied to stablecoin minting. 

Per CryptoQuant, BTC typically sees higher prices when stablecoins, particularly Tether’s USDT, increase token minting. However, USDT’s market cap lulled in recent weeks. It’s currently unclear when USDT and other stablecoins will resume regular minting, which refers to creating new fiat-pegged coins and raising crypto liquidity levels.