The Bitcoin price surge to $71,000 following the Ethereum ETF approval news last week was certainly impressive. However, just as quickly as it rose, the price dipped back down to $67,000 before entering a consolidation phase. Despite this, there seems to be a resurgence of activity among Bitcoin whales – individuals or organizations with substantial BTC holdings. The question now is whether this renewed interest from whales can propel Bitcoin to new record-high prices.
According to a CryptoQuant Quicktake post, Bitcoin whales are showing an increased appetite for buying and are becoming more active in the market once again. The key indicators to watch are the total whale holdings and the moving average tracking the 30-day percentage change in balance. These whales have the ability to influence price movements and market dynamics due to the sheer size of their holdings.
The on-chain analyst highlighted a recent uptick in the monthly percentage change in whale address holdings, as well as a steady rise in the total whale balance. This signals a resurgence in whale interest in accumulating Bitcoin. In March, when Bitcoin hit a new all-time high of $73,737, whales increased their holdings by over 11%. This accumulation rate slowed down in April, with the 30-day percentage change dropping to around 3% by the month’s end. However, May is showing signs of increased accumulation, with the monthly percentage change rising above 5% as of May 24.
The CryptoQuant analyst emphasized that whales are returning with a strong buying force, indicating that current prices are favorable for accumulating Bitcoin, despite market fear. If the whale accumulation reaches levels seen in March, there is a higher chance of Bitcoin surpassing its previous all-time high. This is supported by historical data showing that the last time whales accumulated BTC at a similar rate, the price of Bitcoin soared.
As of the latest data, Bitcoin is trading around $69,216, reflecting a modest 0.8% increase in the past 24 hours. This suggests that whale activity is beginning to have a positive impact on Bitcoin price stability and potential growth.
The resurgence of whale activity in the Bitcoin market is a positive sign for potential price growth. The increased buying appetite among whales indicates confidence in the current price levels and a belief that Bitcoin has room for further appreciation. While market volatility remains a factor to consider, the return of whales could be a significant catalyst for pushing Bitcoin to new record-high prices in the near future. Investors and traders will be closely monitoring whale behavior to gauge the overall market sentiment and potential price directions.