After reaching a peak of $71,000 following the news of the Ethereum ETF approval, the Bitcoin price has since cooled off to $67,000 and entered a consolidation phase. However, amidst this apparent stagnation in price, Bitcoin whales have started to show increased activity in the market. These whales, defined as entities holding substantial amounts of cryptocurrency, have been ramping up their BTC holdings in recent days. This surge in whale activity raises the question – could their renewed appetite for buying Bitcoin propel the price to new record highs?
According to a CryptoQuant Quicktake post by a pseudonymous analyst, the buying appetite of Bitcoin whales has seen a resurgence lately. Key indicators of this trend include the total whale holdings and a moving average tracking the 30-day percentage change in balance. The analyst observed a significant rise in the monthly percentage change in whale address holdings, along with a steady increase in the total whale balance. This indicates a shift in sentiment among whales, with a noticeable uptick in their accumulation of Bitcoin.
The analyst noted that after a two-month decline in buying interest since March, Bitcoin whales have started to increase their holdings once again. In March, when the price of BTC hit a new all-time high of $73,737, whales boosted their holdings by over 11%. However, this accumulation rate tapered off in April, with the 30-day percentage change dropping to around 3% by month-end. The trend reversed in May, with whale accumulation back on the rise, surpassing 5% by May 24.
The resurgence in whale activity suggests that current Bitcoin prices are seen as attractive for purchasing and accumulation, despite prevailing market fears. If whale accumulation reaches levels seen in March, there is a heightened possibility of Bitcoin revisiting and surpassing its previous all-time high. This projection gains credibility from the fact that the last time whales accumulated BTC at a similar rate, the cryptocurrency went on to establish a new peak.
At the time of writing, the price of Bitcoin hovers around $69,216, showing a modest 0.8% increase in the past 24 hours. This marginal uptick reflects the ongoing consolidation phase following the price surge and subsequent correction. However, with Bitcoin whales displaying increased interest in accumulating BTC, the stage may be set for another rally towards new highs.
The return of Bitcoin whales and their growing appetite for accumulation could potentially act as a catalyst for driving the cryptocurrency’s price to unprecedented levels. As these influential market players continue to ramp up their holdings, the likelihood of Bitcoin revisiting and exceeding its previous peak becomes increasingly plausible. Investors and enthusiasts alike will be closely watching the actions of these whales to gauge the future trajectory of the premier cryptocurrency.