Bitcoin whales — large-volume investors — have significantly slowed their rate of accumulation, raising concerns about the cryptocurrency’s ability to reach new all-time highs. According to a report by CryptoQuant, these investors are now adding just 1% to their Bitcoin (BTC) holdings per month, compared to a 6% increase seen earlier this year.

Bitcoin whale holdings % monthly change (screenshot). Source: CryptoQuant

The report highlights that a monthly growth rate above 3% in whale holdings has historically driven Bitcoin prices higher. However, the current slowdown suggests the necessary demand to push Bitcoin to new heights is lacking. This decline in whale activity contrasts with the rapid accumulation observed before BTC’s previous all-time high in March.

Adding to the sluggish demand, spot Bitcoin exchange-traded funds (ETFs) in the United States have not provided the necessary boost. Daily net inflows to spot ETFs have dwindled to a fraction of what they were in March, with recent averages at just 1,300 BTC per day. CryptoQuant suggests that a recovery in ETF purchases is essential for driving overall Bitcoin demand and potentially triggering a price rally.

US spot Bitcoin ETF change in BTC holdings (screenshot). Source: CryptoQuant

While whale accumulation has slowed, permanent holders — those who buy and never sell BTC — have shown no hesitation in increasing their exposure. This group has been accumulating Bitcoin at record levels, with a monthly growth rate of 391,000 BTC, outpacing even the strong demand seen in early 2024 when Bitcoin’s price exceeded $70,000.

Bitcoin permanent holder demand (screenshot). Source: CryptoQuant

However, more speculative investors appear cautious after Bitcoin’s dip to six-month lows in August. Many recent buyers are nursing unrealized losses, as their cost remains above the spot price, which hovers around $59,000. Despite recent price gains, Bitcoin remains under pressure as it struggles to regain upward momentum.