Bitcoin Whale Activity Surges as Confidence in Bull Market Rebounds

Blockchain Data: Bitcoin Whale Activity Surging

Bitcoin whales, the large holders of the cryptocurrency, are increasing their accumulation, signaling renewed confidence in the bull market. This resurgence in whale activity follows Bitcoin’s all-time high in March and a subsequent market correction.

Whale Accumulation and Market Dynamics

According to market intelligence firm CryptoQuant, whales are exhibiting strong buying behavior, suggesting they find current prices attractive despite market uncertainties. The 30-day percentage change in whale address holdings and the total BTC balance held by whales have both risen, underscoring this trend.

Whales, defined as entities holding between 1,000 and 10,000 BTC, typically increase their purchases during bull markets and slow down during bear markets. In March, whales boosted their BTC holdings by over 9.8%. Although the rate slowed to 4.2% by May 1, coinciding with a 20% price decline to under $57,000, it rebounded to 5.5% by May 22.

CryptoQuant CEO Ki Young Ju noted that whales acquired 47,000 BTC during a market dip in early May, highlighting their long-term confidence in Bitcoin. The total investment by whales has surged from $57 billion to $122 billion since the start of the year, as measured by the “realized cap” metric, which considers the purchase value rather than the current market value.

Bitcoin Price and Market Sentiment

Bitcoin’s price recently climbed to $68,760, a 3% increase over the week, reflecting renewed market optimism. Lead Glassnode analyst James Check reported that the Bitcoin network’s total realized cap reached a record high of $578 billion, indicating strong market fundamentals. However, Check suggests the market sentiment is still between enthusiasm and excitement, not yet at true euphoria.

Institutional Investors and Crypto Exposure

Institutional interest in crypto assets has also grown. Nearly 40% of institutional investors had some exposure to crypto in 2023, up from 31% in 2021. A recent survey found that a third of respondents now allocate at least 10% of their portfolios to crypto, compared to a fifth two years ago.

Markus Thielen, head of research at 10x Research, predicted that breaking through $67,500 could lead to new all-time highs. Currently, BTC is trading at $68,700, nearing a new record in USD.

Other analysts, including those from QCP Capital, are also bullish on Bitcoin, forecasting a potential return to the highs of $74,000 following a period of consolidation.