Blockchain Data: Bitcoin Whales Flocking Back to Market, Restoring Confidence in Bullish Trend
According to data from the blockchain, Bitcoin whales, which refers to large holders of the cryptocurrency, have been showing an increased interest in accumulating more coins. This is seen as a positive sign that confidence is returning to the bull market. The surge in whale activity comes after Bitcoin reached its all-time high in March and subsequently experienced a significant market correction.
A market intelligence firm, CryptoQuant, has highlighted the strong buying force demonstrated by these whales. They believe that the current prices are favorable for purchasing and accumulating Bitcoin, despite the prevailing fear and uncertainty in the market. Analysts have noted a rise in the 30-day percentage change in whale address holdings, as well as an increase in the total BTC balance held by whales.
Whales tend to buy Bitcoin more aggressively during bull markets and reduce their buying activity during bear markets. In March, whales had 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 has previously stated 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 recent price increase to $68,760 reflects the renewed optimism in the market. Lead Glassnode analyst James Check has emphasized that the Bitcoin network’s total realized cap has reached a record high of $578 billion, highlighting the strong fundamentals of the cryptocurrency. However, Check believes that the market is still far 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 been increasing their exposure to crypto assets. A recent survey revealed that nearly 40% of institutional investors had some exposure to crypto assets in 2023, compared to 31% in 2021. A third of the respondents reported having at least 10% of their portfolio allocated to crypto assets, compared to only a fifth of respondents two years ago.
Analysts and research firms, such as Markus Thielen from 10x Research, have predicted that Bitcoin could potentially reach 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. QCP Capital, a leading trading firm, has also expressed optimism about Bitcoin’s price momentum, forecasting a potential return to the highs of $74,000.
