Bitcoin Whale Activity Increases, Indicating Renewed Confidence in Bull Market

Bitcoin whales, significant holders of the cryptocurrency, have demonstrated a heightened interest in acquiring additional coins, indicating a revival of confidence in the bull market, according to blockchain data.

The uptick in whale activity follows Bitcoin’s all-time high in March, after which the market underwent a considerable correction.

Market intelligence company CryptoQuant pointed out the robust buying activity from whales, suggesting their perception that current prices are advantageous for purchasing and accumulating Bitcoin, despite ongoing fear and uncertainty in the market.

Analysts noted the increase in the 30-day percentage change in whale address holdings, along with a rise in the total BTC balance owned by whales.

Whales Purchase Bitcoin Vigorously During Bull Markets

Whales, defined as holders of Bitcoin addresses containing between 1,000 BTC and 10,000 BTC (excluding mining companies and crypto exchanges), typically engage in more aggressive Bitcoin purchases during bull markets and scale back their buying during bear markets.

In March, whales raised their BTC holdings by over 9.8%. Although their accumulation rate decreased to 4.2% by May 1, coinciding with a price drop of over 20% to below $57,000, this metric has since bounced back to 5.5% as of May 22.

CryptoQuant CEO Ki Young Ju previously mentioned that whales had acquired 47,000 BTC during the sharp market downturn in early May, further indicating their confidence in the asset’s long-term potential.

The total investment by whales in Bitcoin has significantly increased from $57 billion to $122 billion since the start of the year, as observed through the “realized cap” metric, which assesses the total value of all coins held by whales based on their purchase price rather than the current market value.

Bitcoin’s price has recently climbed to $68,760, reflecting a 3% increase over the week and showcasing renewed optimism in the market.

Lead Glassnode analyst James Check highlighted that the Bitcoin network’s total realized cap has reached an all-time high of $578 billion, emphasizing the strong fundamentals of the cryptocurrency.

However, Check believes that the market is still distant from entering the genuine euphoria phase of the bull market, suggesting that the current sentiment lies 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 level of exposure to crypto assets in 2023, a significant increase from the 31% noted in 2021.

A recent survey revealed that one-third of respondents reported allocating at least 10% of their portfolio to crypto assets, compared to only one-fifth of respondents two years prior.

As reported, Markus Thielen, the head of research at 10x Research, previously anticipated that a breakthrough above $67,500 could potentially pave the way for new all-time highs.

Currently, BTC is trading at $68,700, just under $5,000 away from achieving a new all-time high in U.S. dollars.

In addition to 10x Research, several other analysts have also adopted a bullish stance on Bitcoin following weeks of consolidation.

Leading trading firm QCP Capital has expressed optimism regarding Bitcoin’s price momentum, predicting a possible return to the highs of $74,000.

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