Bitcoin’s (BTC) large holders, often referred to as “whales,” have resumed accumulating the cryptocurrency following a period of profit-taking earlier in January, as shown by CryptoQuant data.

The growth rate of bitcoin holdings by these major investors surged from -0.25% on January 14 to +2% on January 17, marking the highest monthly growth since mid-December. This uptick in buying activity coincided with President Donald Trump’s inauguration, with traders anticipating that his pro-crypto stance and plans for a strategic bitcoin reserve could attract institutional investment in the near future.

Whales are key drivers of BTC demand and influence its price trajectory. Prominent recent buyers include MicroStrategy, the bitcoin-focused company, and KULR, an energy management firm. As a result, selling pressure has eased significantly, especially after bitcoin’s price approached $100,000 in December, which led to daily profits of up to $10 billion.

Long-term holders of bitcoin, considered to be “smart money,” have sold over 1 million BTC since September, but this trend appears to have slowed, suggesting the market may have reached a bottom. Additionally, the unrealized profit margins for traders are nearing zero, which historically acts as a price floor during bullish markets, hinting at stability before the next potential price move.

On the other hand, retail demand for bitcoin appears to be cooling. CryptoQuant noted that while bitcoin’s apparent demand remains in expansion territory, the rate of expansion has decreased from 279K BTC in early December to 75K BTC currently. To see significant price movement, the firm believes demand growth must pick up again.