Blockchain Data: Bitcoin Whale Activity Surging, Confidence in Bull Market Returning
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.
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.
Analysts pointed to the rise in the 30-day percentage change in whale address holdings, along with an increase in the total BTC balance held by whales.
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, coinciding with Bitcoin’s price decline of over 20% to under $57,000, the metric has now rebounded to 5.5% as of May 22.
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, which considers the total value of all whale-held coins based on their purchase time rather than the current market
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