Bitcoin has seen a notable rise in institutional demand since the beginning of the year, as indicated by CryptoQuant CEO Ki Young Ju. According to a recent post by Young Ju, U.S.-based spot Bitcoin exchange-traded funds (ETFs) have recorded a net inflow of approximately 278,000 BTC since their launch in January, with 80% of these inflows attributed to retail investors.

Institutional Demand in Custodial Wallets

Institutional demand for Bitcoin in custodial wallets is on the rise. Over the past year, about 278,000 BTC flowed into U.S. spot ETFs, compared to 670,000 BTC into whale wallets—addresses holding at least 1,000 BTC, excluding crypto exchanges and mining pools.

“Institutional demand is twice that of retail in self-custodial wallets,” said the CEO of CryptoQuant, a leading market analysis platform.

Whales Control the Majority

Data from IntoTheBlock reveals that nearly 40% of the Bitcoin supply is held in whale addresses, each containing at least 1,000 BTC. The latest addition to this list is the Japanese investment firm Metaplanet, which recently increased its Bitcoin holdings by 156.7 BTC on October 28, bringing its total to 1,018 BTC, valued at over $70 million.

Bitcoin Price Surge

Bitcoin has gained 4% in the past 24 hours, trading at $70,950 at the time of writing. The cryptocurrency briefly touched a five-month high of $71,475 earlier today and is now only 3.5% away from its all-time high of $73,750. The daily trading volume surged by 123%, reaching $47 billion, and the market cap surpassed the $1.4 trillion mark following this price hike.

Profitability and Potential Corrections

According to ITB, over 99% of Bitcoin holders are currently profitable. This high level of profitability might lead to short-term profit-taking, which could indicate a potential price correction in the near future.

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