Bitcoin whales, large holders of the cryptocurrency, have shown renewed confidence in the bull market as they have been aggressively buying and accumulating more coins. Despite the recent market correction following an all-time high in March, whales have increased their BTC holdings and the total BTC balance held by them. This indicates a strong buying force by whales, who believe that current prices are favorable for purchasing Bitcoin, highlighting their confidence in the asset’s long-term prospects.
Whales, defined as owners of Bitcoin addresses holding between 1,000 BTC and 10,000 BTC, tend to buy more aggressively during bull markets and reduce their buying activity during bear markets. After a slight slowdown in their accumulation rate in April, whales have rebounded to a 5.5% increase in BTC holdings as of May 22. This comes after they acquired 47,000 BTC during the sharp market dip in early May, further emphasizing their confidence in Bitcoin’s future. The amount of money invested by whales in Bitcoin has also grown significantly from $57 billion to $122 billion since the beginning of the year.
Bitcoin’s price has recently risen to $68,760, reflecting renewed optimism in the market. The total realized cap of the Bitcoin network has reached a record high of $578 billion, showcasing the cryptocurrency’s strong fundamentals. Despite the positive outlook, Glassnode analyst James Check believes that the market is still not in the true euphoria phase of the bull market, indicating that sentiment currently falls between enthusiasm and excitement.
Institutional investors have also increased their exposure to crypto assets, with nearly 40% having some form of exposure in 2023 compared to 31% in 2021. A third of respondents reported having at least 10% of their portfolio allocated to crypto assets, showing a growing interest in digital currencies among institutional investors. With BTC trading at $68,700, just under $5,000 away from a new all-time high in U.S. dollars, analysts are turning bullish on Bitcoin’s price momentum. Leading trading firm QCP Capital has forecasted a potential return to highs of $74,000, further fueling optimism in the market.
