On-chain data shows Bitcoin Whales' Buying Appetite Returns
Bitcoin has dropped after rising to $71,000 on Ethereum ETF clearance announcement last week. After the price rise, the top cryptocurrency fell to $67,000 and is now consolidating.
Bitcoin whales have been packing their suitcases with large quantities of BTC in recent days, suggesting they are back. Can the returning whales' hunger propel Bitcoin to a record high?
Will All-Time High Return?
In a CryptoQuant Quicktake article, a pseudonymous analyst said Bitcoin whales are purchasing again. Indicators include total whale holdings and a 30-day moving average of balance % change.
Whales are persons or organizations that hold large quantities of a cryptocurrency (like 1,000 BTC). Whales' large holdings allow them to affect pricing and market dynamics.
The on-chain analyst highlighted a recent increase in whale address holdings' monthly percentage change and a consistent climb in whale balance in the Quicktake article. Some commentator said:
The figure above shows that Bitcoin whales raised their holdings by almost 11% in March when the BTC price reached a record $73,737. The 30-day percentage change fell to roughly 3% by April, stabilizing the BTC accumulation rate.
The monthly percentage change for bitcoin accumulation rose beyond 5% on May 24. The CryptoQuant analyst wrote:
Despite widespread concern, whales are returning with a large buying force, suggesting that present prices are acceptable for purchase and collecting.
If whale BTC accumulation returns to March levels, Bitcoin may reach or exceed its all-time high. This prediction is more likely as the flagship cryptocurrency reached a new high the last time whales acquired BTC at that pace.
Bitcoin is now trading at $69,216, up 0.8% in 24 hours.
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