BlockBeats News, October 3rd, according to CryptoQuant data, Bitcoin’s on-chain demand is growing at a monthly rate of about 62,000 coins, a backdrop similar to the fourth quarters of 2020, 2021, and 2024, when prices have all seen significant rallies. Historically, sustained demand growth has often provided support for price increases.
This round of expansion is mainly driven by whales and ETFs. Large holders’ balances are growing at an annualized rate of 331,000 bitcoins, a pace stronger than the 255,000 coins in Q4 2024, 238,000 coins in early Q4 2020, and in stark contrast to the decrease of 197,000 coins during the market weakness of 2021.
ETFs may provide additional momentum. In Q4 2024, these products bought a total of 213,000 bitcoins, increasing their holdings by 71%, and it is expected that they may further increase their positions before the end of this year. However, to truly translate demand into a breakthrough, price momentum remains critical. On-chain valuation shows that traders’ “realized price” is a key threshold at $116,000.
Once the price surpasses this level, it signifies the market reentering the cycle indicator range of the “bull market” phase and may open up a valuation range of $160,000 to $200,000 in the fourth quarter.
