Blockchain Data: Bitcoin Whales Increase Activity, Restoring Confidence in Bull Market
Bitcoin whales, individuals with large amounts of the cryptocurrency, are displaying a growing interest in accumulating more coins, signaling a resurgence in confidence in the bull market, according to blockchain data.
The revival in whale activity follows Bitcoin’s peak in March and subsequent market correction.
Market intelligence company CryptoQuant has highlighted the strong buying power exhibited by whales, indicating their belief that current prices are favorable for purchasing and accumulating Bitcoin, despite prevailing fear and market uncertainty.
Analysts have noted the increase in the 30-day percentage change in whale address holdings, as well as the rise in the total BTC balance held by whales.
Whales are defined as owners of Bitcoin addresses holding between 1,000 BTC and 10,000 BTC (excluding mining firms and crypto exchanges). They tend to buy Bitcoin more aggressively during bull markets and reduce their buying activity during bear markets.
Throughout March, whales 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 acquired 47,000 BTC during the sharp market dip in early May, further indicating their confidence in the long-term prospects of the asset.
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 strong fundamentals of the cryptocurrency.
However, Check believes that the market is still a long way from entering the true euphoria phase of the bull market, suggesting that the current sentiment falls somewhere between enthusiasm and excitement.
Institutional investors have also increased their exposure to crypto assets, with nearly 40% having some exposure in 2023, compared to 31% in 2021.
A recent survey revealed that a third of respondents reported allocating at least 10% of their portfolio to crypto assets, compared to a fifth of respondents two years ago.
Analysts, including Markus Thielen from 10x Research, have 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.
Several analysts, including trading firm QCP Capital, have expressed optimism about Bitcoin’s price momentum, forecasting a potential return to the highs of $74,000.