Blockchain data indicates that Bitcoin whales, who are significant holders of the cryptocurrency, are increasingly inclined towards accumulating more coins, suggesting a renewed confidence in the bull market.
This surge in whale activity follows Bitcoin's peak in March and subsequent substantial market correction. CryptoQuant, a market intelligence firm, emphasized the robust buying pressure demonstrated by whales, suggesting their confidence in the attractiveness of current Bitcoin prices for acquisition and accumulation, despite existing market apprehensions and uncertainties.
Analysts highlighted the uptick in the 30-day percentage change in whale address holdings, coupled with a rise in the total BTC balance held by whales, as indicators of this trend.
Aggressive Bitcoin Buying by Whales in Bull Markets
Whales, who are Bitcoin address holders with between 1,000 and 10,000 BTC (not including mining companies and cryptocurrency exchanges), typically increase their purchases during bull markets and decrease them during bad markets.
Whales had boosted their Bitcoin holdings by more than 9.8% in March. The metric has since recovered to 5.5% as of May 22, despite its accumulation rate slowing in April to 4.2% by May 1, which coincided with Bitcoin's price decrease of almost 20% to under $57,000.
Whales' purchase of 47,000 BTC during the severe market decline in early May, as previously reported by CryptoQuant CEO Ki Young Ju, further demonstrated their faith in the asset's long-term potential.
The investment from Bitcoin whales has notably surged from $57 billion to $122 billion since the start of the year, as indicated by the "realized cap" metric. This metric evaluates the total value of all coins held by whales based on their purchase time, rather than their current market worth.
Bitcoin's price has recently climbed to $68,760, marking a 3% increase over the week and reflecting renewed positivity in the market.
James Check, a lead analyst at Glassnode, highlighted that the total realized cap of the Bitcoin network has reached a record high of $578 billion, underscoring the cryptocurrency's strong fundamentals.
However, despite these positive indicators, Check believes that the market has yet to reach the euphoric phase of the bull market, suggesting that current sentiment lies somewhere between enthusiasm and excitement.
Institutional Investors Get More Into Cryptocurrencies
In 2023, almost 40% of institutional investors reported having some exposure to cryptocurrency assets, a significant increase from the 31% reported in 2021.
A recent poll found that, compared to just a fifth of respondents two years ago, a third of respondents said they had at least 10% of their portfolio invested in cryptocurrency assets.
According to reports, 10x Research's head of research, Markus Thielen, had earlier forecast that a breakthrough above $67,500 may result in new all-time highs.
At $68,700, BTC is currently trading, just $5,000 short of hitting a new all-time high in US currency.
After weeks of consolidation, a few other analysts have also become optimistic on Bitcoin, in addition to 10x Research.
Prominent trading firm QCP Capital has voiced optimism regarding Bitcoin's price trajectory, predicting a potential resurgence towards the previous highs of $74,000.
May 2024, Cryptoniteuae