According to blockchain statistics, big Bitcoin Whale Activity Rises have been buying more coins than usual, indicating they are back in the bull market. Following Bitcoin’s record high in March and the accompanying severe market correction, whale activity has resumed its previous level of intensity.
According to a market intelligence organization called CryptoQuant, whales are showing a lot of buying power, which suggests they think the prices are reasonable for buying Bitcoin right now, even if there are many worries and market uncertainty. The total amount of Bitcoin held by whales has increased, and analysts have noticed a surge in the percentage change in whale addresses’ ownership over the past 30 days.
Whales Buy Bitcoin Aggressively During Bull Markets
Bitcoin “whales,” or accounts held by individuals or entities with 1,000 BTC to 10,000 BTC in circulation (not including mining companies or cryptocurrency exchanges), are known to increase their buying activity during bull markets and decrease it during bear markets—Bitcoin Whale Activity Rose by more than 9.8 percent in March. As of May 22, their accumulation rate has jumped back to 5.5% from 4.2% in April, coinciding with Bitcoin’s 20% price fall to under $57,000.
According to Ki Young Ju, CEO of CryptoQuant, whales bought 47,000 BTC during the early May market crash, which shows they are bullish on the asset’s future. The “realized cap” metric, which utilizes the purchase time rather than the current market value to determine the total value of all coins held by Bitcoin Whale Activity Rises, shows that their investment in Bitcoin has increased substantially from $57 billion to $122 billion since the start of the year.
The latest 3% weekly surge in Bitcoin’s price to $68,760 reflects the market’s optimism. Lead Glassnode analyst James Check highlighted the cryptocurrency’s solid fundamentals and underscored that the total realized cap of the Bitcoin network had reached a record high of $578 billion. On the other hand, Check thinks we have a long way to go before we reach the euphoria phase of this bull market, so I guess we’re seeing a mix of excitement and enthusiasm right now.
Institutional Investors Increase Crypto Exposure
The percentage of institutional investors with crypto asset exposure significantly increased from 31% in 2021 to nearly 40% in 2023. Only one-fifth of respondents two years ago said they had 10% or more of their portfolio invested in cryptocurrency; now, one-third of respondents say the same. The head of Research at 10x ResearResearchus, Thielen, has earlier forecasted that fresh all-time highs could be possible with a breakthrough above $67,500.
Bitcoin is just $5,000 short of a new dollar all-time high, trading at $68,700 right now. After weeks of consolidation, 10x Research isn’t the first to become optimistic about Bitcoin. Prominent investment firm QCP Capital is bullish on Bitcoin’s upward momentum and has predicted it might recover to $74,000.
FAQs
How much Bitcoin did whales buy during the recent market dip?
During the early May market crash, whales purchased around 47,000 BTC, showing their bullish outlook on Bitcoin’s future.
What is the significance of the “realized cap” metric for Bitcoin?
The realized cap reflects the value based on the purchase price of all coins held by whales, and it has grown from $57 billion to $122 billion this year.
How has institutional interest in crypto changed recently?
Institutional exposure to crypto rose from 31% in 2021 to nearly 40% in 2023, with more investors holding 10% or more of their crypto portfolios.
What are market experts forecasting for Bitcoin’s price?
Analysts, including 10x Research and QCP Capital, are optimistic, with predictions that Bitcoin could rise to new highs, potentially reaching $74,000.
