Bitcoin Whale Activity Increases, Bull Market Confidence Returns

Last Updated: May 25, 2024 04:24 EDT | 2 minute read

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

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

Market analysis company CryptoQuant highlighted the strong buying power exhibited by the whales, indicating their belief that current prices are favorable for purchasing and accumulating Bitcoin, despite the prevailing fear and market uncertainty.

Analysts pointed to the increase in the 30-day percentage change of addresses held by the whales, along with an increase in the total BTC balance held by the 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 companies and cryptocurrency exchanges), tend to buy Bitcoin more aggressively during bull markets and reduce their buying activity during bull markets. bearish markets.

Over the course of March, Whales had increased their BTC holdings by more than 9.8%. Although their accumulation rate slowed in April to 4.2% by May 1, coinciding with Bitcoin’s price drop of more than 20% to below $57,000, the metric has now rebounded to 5.5% starting May 22nd.

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

The amount of money invested by whales in Bitcoin has grown significantly 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 coins held by whales based on their time purchase rather than current market value.

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

James Check, lead analyst at Glassnode, pointed out that the total realized limit of the Bitcoin network has reached a record high of $578 billion, underscoring the cryptocurrency’s strong fundamentals.

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

Institutional investors increase exposure to cryptocurrencies

Almost 40% of institutional investors had some exposure to cryptocurrencies 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 cryptocurrencies, compared to just a fifth of respondents two years ago.

As reported, Markus Thielen, head of research at 10x Research, had 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 hitting a new all-time high in US dollar terms.

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

Leading trading firm QCP Capital expressed optimism about Bitcoin’s price action, predicting its potential return to the highs of $74,000.

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