Bitcoin Whales’ Buying Appetite Returns, On-Chain Data Shows

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Bitcoin

The Bitcoin price has cooled off after surging to as high as $71,000 on the back of the Ethereum ETF approval news last week. Not long after the price spike, the premier cryptocurrency witnessed a correction to $67,000 and appears to be back in a consolidation range.

Interestingly, Bitcoin whales seem to be awakening from their slumber, as they have been loading their bags with significant BTC amounts in the past few days. This begs the question – can the returning whales’ appetite push Bitcoin to a new record-high price?

Is A Return To All-Time High Imminent?

A pseudonymous analyst shared in a CryptoQuant Quicktake post that Bitcoin whales are showing an increased buying appetite and getting active in the market once again. The relevant indicators here are the total whale holdings and a moving average tracking a 30-day percentage change in the balance.

Whales are entities (individuals or organizations) that own substantial amounts of a cryptocurrency (typically at least 1,000 BTC, in this case). Due to the size of their holdings, whales are often able to influence price movements and market dynamics through their activities.

In the Quicktake post, the on-chain analyst noted a recent increase in the monthly percentage change in whale address holdings and a steady rise in the total whale balance. The pseundonymous pundit said:

The whales’ appetite for buying Bitcoin has returned strongly, after a two-month decline in buying interest since March.

Bitcoin
Source: CryptoQuant

From the chart above, it was observed that the Bitcoin whales had increased their holdings by more than 11% in March when the BTC price hit a new all-time high of $73,737. However, the BTC accumulation rate steadied in April, with the 30-day percentage change falling to around 3% by the end of the month.

Bitcoin accumulation appears to be on the rise in May, with the monthly percentage change returning to above 5% as of May 24. The CryptoQuant analyst said in the post: 

They [whales] are now returning with a strong buying force again, indicating that the current prices are suitable for purchasing and accumulating despite the widespread fear.

If the whale accumulation of BTC returns to its March level, there is an increased likelihood of the Bitcoin price returning to and perhaps surpassing its current all-time high. This projection is even more plausible considering that the premier cryptocurrency did forge a new high the last time the whales accumulated BTC at that rate.

Bitcoin Price At A Glance

As of press time, the price of Bitcoin stands at around $69,216, reflecting a bare 0.8% increase in the past 24 hours.

Bitcoin
The price of BTC above $69,000 on the daily timeframe | Source: BTCUSDT chart on TradingView

Featured image from iStock, chart from TradingView

Opeyemi Sule

Opeyemi Sule

Opeyemi is a proficient writer and enthusiast in the exciting and unique cryptocurrency realm. While the digital asset industry was not his first choice, he has remained absolutely drawn since making a foray into the space over two years. Now, Opeyemi takes pride in creating unique pieces unraveling the complexities of blockchain technology and sharing insights on the latest trends in the world of cryptocurrencies. Opeyemi savors his attraction to the crypto market, which explains why he spends the better parts of his day looking through different price charts. “Looking” is a rather simple way to describe analyzing and interpreting various price patterns and chart formations. However, it appears that is not Opeyemi’s favorite part – in fact, far from it. Being able to connect what happens on a price chart to on-chain movements and blockchain activities is what keeps Opeyemi ticking. “This emphasizes the intricacies of blockchain technology and the cryptocurrency market,” he would say. Most importantly, Opeyemi thinks of any market insights as the gospel, while recognizing that he is only a messenger. When he is not clicking away at his keyboard, Opeyemi is most definitely listening to music, playing games, reading a book, or scrolling through X. He likes to think he is not loyal to a particular genre of music, which can be true on many days. However, the fast-rising Afrobeats genre is a staple in Opeyemi’s Spotify Daily Mix. Meanwhile, Opeyemi is a voracious reader who enjoys a wide category of books – ranging from science fiction, fantasy, and historical, to even romance. He believes that authors like George R. R. Martin and J. K. Rowling are the greatest of all time when it comes to putting pen to paper. Opeyemi believes his reading of the Harry Potter series twice is proof of that. Indeed, Opeyemi enjoys spending most of his time within the four walls of his home. However, he also sometimes finds solace in the company of his friends at a bar, a restaurant, or even on a stroll. In essence, Opeyemi’s ambivert (haha! been searching for an opportunity to use the word to describe myself) nature makes him a social chameleon who is able to quickly adapt to different settings. Opeyemi recognizes the need to constantly develop oneself in order to stay afloat in a competitive and ever-evolving market like crypto. For this reason, he is always in learning mode, ready to pick up the slightest lesson from every situation. Opeyemi is efficient and likes to deliver all that is required of him in time – he believes that “whatever is worth doing at all is worth doing well.” Hence, you will always find him striving to be better. Ultimately, Opeyemi is a good writer and an even better person who is trying to shed light on an exciting world phenomenon – cryptocurrency. He goes to bed every day with a smile of satisfaction on his face, knowing that he has done his bit of the holy assignment – spreading the crypto gospel to the rest of the world.

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