Bitcoin whales, the cryptocurrency’s largest holders, are showing an increased desire to accumulate more coins, signaling a return of confidence in the bull market, according to blockchain data.
The resurgence in whale activity comes after Bitcoin's price hit an all-time high in March, followed by a major market correction.
Market research firm CryptoQuant highlighted the strong purchasing power of whales, indicating that they believe current prices are favorable for buying and accumulating Bitcoin despite widespread fear and market uncertainty.
Analysts noted an increase in the 30-day percentage change in whale address holdings, along with an increase in the amount of BTC held by whales.
Whales actively purchase Bitcoin during bull market
Whales, defined as the owners of Bitcoin addresses holding between 1,000 BTC and 10,000 BTC (excluding mining companies and cryptocurrency exchanges), tend to be more active in purchasing Bitcoin during bull markets and reduce their purchasing activity during bear markets.
During March, whales increased their BTC holdings by over 9.8%. Coinciding with Bitcoin's price dropping by over 20% in April to below $57,000, holdings had fallen to 4.2% by May 1, but as of May 22, the metric had recovered to 5.5%.
CryptoQuant CEO Ki Young Ju previously said that whales acquired 47,000 BTC during a sharp market drop in early May, further demonstrating their confidence in the asset's long-term prospects.
The amount of money that whales have invested in Bitcoin has increased significantly since the beginning of the year, from $57 billion to $122 billion, as observed by the “realized cap” metric, which considers the total value of all coins held by a whale based on when they purchased them rather than their current market value.
Bitcoin prices recently rose to $68,760, up 3% in a week, reflecting renewed optimism in the market.
Glassnode principal analyst James Cech highlighted that the Bitcoin network’s total realized value hit a record high of $578 billion, highlighting the cryptocurrency’s solid fundamentals.
However, Cech believes the market is still a long way from entering the true euphoric phase of a bull market, suggesting that current sentiment is somewhere between enthusiasm and excitement.
#Bitcoin: Whales' buying interest is back
“They are now returning with strong purchasing power again, indicating that current prices are favorable for buying and accumulating, despite widespread fear.” Abram Chart
Link👇https://t.co/VL5mz8dgK6
— CryptoQuant.com (@cryptoquant_com) May 24, 2024
Institutional investors increase investment in cryptocurrencies
Almost 40% of institutional investors There is some exposure to crypto assets in 2023, a significant increase from the 31% recorded in 2021.
A recent survey found that a third of respondents reported allocating at least 10% of their portfolios to crypto assets, compared to just a fifth of respondents two years ago.
Markus Thielen, head of research at 10x Research, reportedly said: Breaking through $67,500 It could lead to new all-time highs.
Currently, BTC is trading at $68,700, less than $5,000 away from its all-time high in USD terms.
Aside from 10x Research, other analysts are also turning bullish on Bitcoin after weeks of consolidation.
Major trading firm QCP Capital expressed optimism about Bitcoin's price trend, Back to highs of $74,000.
