Bitcoin whales, large holders of the cryptocurrency, have shown an increased appetite for accumulating more coins, signaling a return of confidence in the bull market, as per blockchain data.
The resurgence in whale activity comes after the price of Bitcoin reached its all-time high in March and subsequently experienced a significant market correction.
Market intelligence firm CryptoQuant highlighted the strong buying force exhibited by whales, indicating their belief that current prices are favorable for purchasing and accumulating Bitcoin, despite prevailing fear and market uncertainty.
Analysts pointed to the rise in the 30-day percentage change in whale address holdings, along with an increase in the total BTC balance held by whales.
Whales Buy Bitcoin Aggressively During Bull Markets
Whales, defined as owners of Bitcoin addresses holding between 1,000 BTC and 10,000 BTC (excluding mining firms and crypto exchanges), tend to buy Bitcoin more aggressively during bull markets and reduce their buying activity during bear markets.
Throughout March, whales had increased their BTC holdings by over 9.8%. Although their accumulation rate slowed in April to 4.2% by May 1, coinciding with Bitcoin’s price decline of over 20% to under $57,000, the metric has now rebounded to 5.5% as of May 22.
CryptoQuant CEO Ki Young Ju previously noted that whales had acquired 47,000 BTC during the sharp market dip in early May, further indicating their confidence in the asset’s long-term prospects.
The amount of money invested by whales in Bitcoin has significantly grown from $57 billion to $122 billion since the beginning of the year, as observed through the “realized cap” metric, which considers the total value of all whale-held coins based on their purchase time rather than the current market value.
Bitcoin’s price has recently risen to $68,760, marking a 3% increase over the week and reflecting the renewed optimism in the market.
Lead Glassnode analyst James Check emphasized that the Bitcoin network’s total realized cap has reached a record high of $578 billion, underscoring the robust fundamentals of the cryptocurrency.
However, Check believes that the market is still far from entering the true euphoria phase of the bull market, suggesting that the current sentiment falls somewhere between enthusiasm and excitement.
#Bitcoin: The Whales’ appetite for buying returns
“They are now returning with a strong buying force again, indicating that the current prices are suitable for purchasing and accumulating despite the widespread fear.” – By @abramchart
Link 👇https://t.co/VL5mz8dgK6
— CryptoQuant.com (@cryptoquant_com) May 24, 2024
Institutional Investors Increase Crypto Exposure
Nearly 40% of institutional investors had some exposure to crypto assets in 2023, a notable rise from the 31% recorded in 2021.
According to a recent survey, a third of respondents reported having at least 10% of their portfolio allocated to crypto assets, compared to only a fifth of respondents two years ago.
As reported, Markus Thielen, the head of research at 10x Research, previously predicted that a breakthrough above $67,500 could potentially lead to new all-time highs.
Currently, BTC is trading at $68,700, less than $5,000 away from reaching a new all-time high in U.S. dollars.
Aside from 10x Research, some other analysts have also turned bullish on Bitcoin following weeks-long consolidation.
Leading trading firm QCP Capital has expressed optimism about Bitcoin’s price momentum, forecasting a potential return to the highs of $74,000.
From: cryptonews
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