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Bitcoin whale activity increases, confidence in bull market returns

Last update:

May 25, 2024 04:24 EDT
| 2 minutes reading time

Blockchain data: Bitcoin whale activity is increasing sharply

Bitcoin whales, or large holders of the cryptocurrency, have shown an increased appetite for accumulating more coins, according to blockchain data, indicating a return of confidence in the bull market.

The resurgence in whale activity came after the Bitcoin price hit its all-time high in March and was followed by a significant market correction.

Market research firm CryptoQuant highlighted the strong buying power of whales and expressed their belief that current prices are favorable for buying and accumulating Bitcoins despite the prevailing fear and market uncertainty.

Analysts pointed to the increase in the percentage change of addresses held by whales in 30 days, as well as an increase in the total BTC balance held by whales.

Whales buy Bitcoin aggressively during bull markets

Whales, defined as owners of Bitcoin addresses with holdings between 1,000 and 10,000 BTC (excluding mining companies and crypto exchanges), tend to buy Bitcoin more aggressively in bull markets and reduce their buying activity in bear markets.

Over the course of March, whales had increased their BTC holdings by over 9.8%. Although their accumulation rate slowed to 4.2% in April through May 1, coinciding with Bitcoin’s price drop of over 20% to below $57,000, the value has now recovered to 5.5% as of May 22.

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

The amount of money invested in Bitcoin by whales has increased significantly since the beginning of the year, from $57 billion to $122 billion, as shown by the Realized Cap metric, which considers the total value of all coins held by whales based on the time of purchase rather than the current market value.

Bitcoin price recently rose to $68,760, up 3% on the week and reflecting renewed optimism in the market.

Glassnode senior analyst James Check stressed that the total realized capitalization of the Bitcoin network has reached a record high of $578 billion, underscoring the cryptocurrency’s robust fundamentals.

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

#Bitcoin: Whales’ appetite for yield buying

“They are now returning with strong buying power, suggesting that current prices are suitable for buying and accumulation despite widespread fear.” – By @abramchart

Link 👇https://t.co/VL5mz8dgK6

— CryptoQuant.com (@cryptoquant_com) May 24, 2024

Institutional investors increase their exposure to cryptocurrencies

Nearly 40% of institutional investors had some exposure to crypto assets in 2023, a significant increase from 31% in 2021.

According to a recent survey, a third of respondents said they had invested at least 10% of their portfolio in crypto assets, compared to just a fifth of respondents two years ago.

As reported, Markus Thielen, head of research at 10x Research, had previously predicted that Breakthrough above 67,500 USD could potentially lead to new all-time highs.

Currently, BTC is trading at $68,700, less than $5,000 away from a new all-time high in US dollar terms.

In addition to 10x Research, several other analysts have also become optimistic about Bitcoin after weeks of consolidation.

Leading trading firm QCP Capital has expressed optimism about Bitcoin’s price dynamics and predicts a potential Return to the high of $74,000.

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