Increased Bitcoin Whale Activity, Bull Market Confidence Returns

Last updated: May 25, 2024 04:24 EDT | 2 minutes reading

Bitcoin whales, large holders of the cryptocurrency, have shown a greater appetite for accumulating more coins, signaling a return of confidence in the bull market, according to blockchain data.

The resurgence of whale activity comes after the price of Bitcoin reached an all-time high in March and subsequently suffered a significant market correction.

Market intelligence company CryptoQuant Featured the strong buying strength displayed 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 increase in the 30-day percentage change in whale address holdings, along with an increase in the total balance of BTC held by whales.

Whales Buy Bitcoin Aggressively During Bull Markets

Whales, defined as owners of Bitcoin addresses that hold between 1,000 BTC and 10,000 BTC (excluding mining companies and cryptocurrency exchanges), tend to buy Bitcoin more aggressively during bull markets and reduce their buying activity during bull markets. bear markets.

Throughout March, whales increased their BTC holdings by over 9.8%. Although its accumulation rate slowed in April to 4.2% on May 1, coinciding with Bitcoin’s price decline of over 20% to below $57,000, the metric has now recovered to 5.5% on May 22nd.

CryptoQuant CEO Ki Young Ju previously noted that whales acquired 47,000 BTC during the sharp market crash in early May, further indicating his confidence in the asset’s long-term prospects.

The amount of money invested by whales in Bitcoin has grown significantly from US$57 billion to US$122 billion since the beginning of the year, as observed through the “realized cap” metric, which considers the total value of all coins held by whales. based on your purchase. time rather than current market value.

The price of Bitcoin recently rose to $68,760, marking a 3% increase over the week and reflecting renewed market optimism.

Glassnode lead analyst James Check emphasized that the Bitcoin network’s total realized cap has reached a record $578 billion, underscoring the cryptocurrency’s robust fundamentals.

However, Check believes that the market is still far from entering the true euphoric phase of the bull market, suggesting that current sentiment lies somewhere between enthusiasm and excitement.

Institutional Investors Increase Crypto Exposure

About 40% of institutional investors had some exposure to crypto assets in 2023, a notable increase 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 just a fifth of respondents two years ago.

As reported, Markus Thielen, head of research at 10x Research, previously predicted that a advance above US$67,500 could potentially lead to new all-time highs.

BTC is currently trading at $68,700, less than $5,000 away from reaching a new all-time high in US dollars.

In addition to 10x Research, some other analysts were also bullish on Bitcoin after a weeks-long consolidation.

Leading trading firm QCP Capital has expressed optimism about Bitcoin price dynamics, predicting a potential return to highs of $74,000.

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