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 organisation 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 is a lot of worry 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 Rises by more than 9.8 per cent 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 “realised cap” metric, which utilises 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. The strong fundamentals of the cryptocurrency were highlighted by lead Glassnode analyst James Check. Who underscored that the total realised cap of the Bitcoin network has 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
A significant increase from 31% in 2021 to nearly 40% in 2023 was the percentage of institutional investors with crypto asset exposure. 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 as it trades 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.
