Bitcoin has dropped more than 10% since reaching its all-time high of $109,000 on January 20. This peak coincided with Donald Trump’s inauguration, marking a 60% surge since his election victory in November.
On-chain data suggests that Bitcoin’s next bullish phase is imminent, despite the cryptocurrency remaining stuck below the $100,000 mark.
According to CryptoQuant, the demand for perpetual Bitcoin holdings—an indicator tracking accumulation by long-term investors—has surged in recent months. This trend aligns with Bitcoin’s price rally from approximately $67,500 in November 2024 to its record high in early 2025.
CryptoQuant’s data reveals that accumulation addresses, primarily belonging to investors who rarely sell, have significantly increased their BTC holdings.
Historically, spikes in long-term Bitcoin accumulation have often been followed by nearly equivalent sell-offs, indicating that many so-called “whales” eventually become sellers within a month after accumulating Bitcoin. This pattern has been particularly evident in past bull runs, where aggressive buying was ultimately followed by profit-taking.
However, what sets the current uptrend apart is that demand from accumulation addresses—both on a daily basis and on the 30-day moving average—has yet to return to pre-inauguration levels, even after the recent dip from its accumulation peak.
Instead, demand has rebounded even during the early February correction, suggesting that long-term holders remain confident in Bitcoin, with lower selling pressure compared to previous cycles.
Read more: Crypto Markets Recover After U.S. Tariff-Induced Dip
The potential for a strategic Bitcoin reserve in the U.S., along with growing institutional adoption—including ETFs, government entities, publicly traded companies, and major investment funds—is playing a crucial role in sustaining Bitcoin’s upward momentum.
