Ki Young Ju recently said the trading volume of Bitcoin on exchanges had grown 20 times, but the price has not followed that jump. BTC and ETH have become increasingly scarce on cryptocurrency exchanges, as the outflow has exceeded the inflow, signaling growing accumulation.
The percentage of Bitcoin (BTC) in the hands of large investors has reached its lowest level since 2019. Although the price has dropped by around 60% this year, its demand has increased over the last three months.
Ki Young Ju, the CEO of CryptoQuant, said the trading volume of BTC on exchanges had grown 20 times over the last six months. The crypto asset may not be in a significant accumulation phase, as the price did not follow that jump.
The entrepreneur reported that the trading volume dropped toward a yearly low last month. However, he pointed out that the daily closing price has not changed much, indicating that someone is buying all the liquidity.
Bitcoin Is the Leader in Purchases in the Crypto Market
According to Ju, the spot trading volume on Binance rose to 84% as the Bitcoin price reached the USD 20,000 level. Meanwhile, Coinbase managed to capture 9% of the total volume after experiencing a sharp drop in revenue.
Although the trading volume grew, the number of coins on exchanges has dropped dramatically. According to Glassnode, addresses transferring BTC to cryptocurrency exchanges recently reached their lowest level, reiterating a significant accumulation phase.
The Cryptocurrency Whales Also Invest Billions in Ether
Data from analytics firm Santiment indicates that the cryptocurrency whales are also interested in Ether (ETH). Addresses holding at least 1 million ETH have bought over 3.5 million units over the last few months, totaling USD 4.55 billion.
ETH has been increasingly scarce on cryptocurrency exchanges, as with BTC. The outflow of the token has exceeded its inflow over the last two weeks, indicating a growing accumulation.
It is a matter of time before seeing how long the whales will continue hoarding Bitcoin and Ether. BTC is trading at USD 19,020 and ETH at USD 1,282, dropping by 0.2% and 0.8%, respectively, over the last 24 hours.
The Crypto Whales Start to Invest before the Bullish Run
The whales have already defined a plan to buy crypto assets to take advantage of the next growth phase in the market. Those long-term investors do not want to wait for the SEC to approve a Bitcoin spot ETF to invest.
In addition, the direct purchases of cryptocurrencies through trading platforms are the preferred method by institutional investors. Over 55% of those companies would like to increase exposure to crypto assets rather than derivatives.
Most institutional investors want to take advantage of the next cryptocurrency bullish run without waiting for crypto winter to end. For example, the NYDIG group has raised USD 720 million for its Bitcoin fund.
Cryptocurrencies like Bitcoin and Ether have become increasingly relevant in the global economic system, which institutional investors know well. Despite the current bullish trend in the crypto market, many firms have decided to acquire BTC and ETH to increase their reserves.
By Alexander Salazar
