Here is Why a Bearish Bitcoin Trend is Plausible, According to CryptoQuant

According to a report by CryptoQuant, the slowing growth of Bitcoin whale assets could indicate a bearish trend for the cryptocurrency’s price.

CryptoQuant’s latest weekly update reveals a notable drop in the 30-day growth rate of Bitcoin held by large investors, plummeting from 6% in February to a mere 1% now. This decline in whale holdings is viewed as a potential sign of weakening market conditions.

The report highlights that historically, a monthly growth rate exceeding 3% in whale assets correlates with rising Bitcoin prices—a trend that is currently absent. The diminishing interest from major holders might suggest a reduction in Bitcoin’s bullish momentum.

Additionally, CryptoQuant’s “apparent demand” metric, which measures the difference between the daily Bitcoin block subsidy and the amount of Bitcoin that has remained unmoved for over a year, shows a sharp slowdown. Apparent demand peaked at 496,000 BTC in January 2024 but has since turned negative, decreasing by 25,000 BTC.

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The report also notes a decrease in Bitcoin’s price premium on Coinbase. Earlier in 2024, this premium was at 0.25%, driven by strong ETF-related demand. However, it has now dropped to 0.01%, indicating a weakening interest in Bitcoin within the U.S. market.

Overall, CryptoQuant’s analysis suggests that the decline in whale assets and overall Bitcoin demand could continue to exert downward pressure on Bitcoin prices unless market conditions change significantly.

Alexander Stefanov