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Bitcoin Whales Show Increased Appetite for Accumulating Coins
Bitcoin whales, large holders of the cryptocurrency, have shown an increased appetite for accumulating more coins, signaling a return of confidence in the bull market, as per blockchain data.
Resurgence in Whale Activity
The resurgence in whale activity comes after the price of Bitcoin reached its all-time high in March and subsequently experienced a significant market correction. Market intelligence firm CryptoQuant highlighted the strong buying force exhibited by whales, indicating their belief that current prices are favorable for purchasing and accumulating Bitcoin, despite prevailing fear and market uncertainty.
Whales Buy Bitcoin Aggressively During Bull Markets
Whales, defined as owners of Bitcoin addresses holding between 1,000 BTC and 10,000 BTC (excluding mining firms and crypto exchanges), tend to buy Bitcoin more aggressively during bull markets and reduce their buying activity during bear markets. Throughout March, whales had increased their BTC holdings by over 9.8%. Although their accumulation rate slowed in April to 4.2% by May 1, the metric has now rebounded to 5.5% as of May 22.
Bitcoin Whales’ Confidence in the Market
CryptoQuant CEO Ki Young Ju previously noted that whales had acquired 47,000 BTC during the sharp market dip in early May, further indicating their confidence in the asset’s long-term prospects. 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.
Institutional Investors Increase Crypto Exposure
Nearly 40% of institutional investors had some exposure to crypto assets in 2023, a notable rise from the 31% recorded in 2021. According to a recent survey, a third of respondents reported having at least 10% of their portfolio allocated to crypto assets, compared to only a fifth of respondents two years ago.
Aside from 10x Research, some other analysts have also turned bullish on Bitcoin following weeks-long consolidation. Leading trading firm QCP Capital has expressed optimism about Bitcoin’s price momentum, forecasting a potential return to the highs of $74,000.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
