According to blockchain data, Bitcoin whales have seen their appetite for purchasing BTC tokens return once more.
It is the first time this has happened since March, when the price of Bitcoin had reached its all-time high value.
The whales
CryptoQuant, the market intelligence firm, said that whales were returning with a strong buying force again.
This shows that the current price of Bitcoin is suitable for buying and accumulating the leading crypto token despite the widespread fear.
According to analysts, there has been a percentage change in whale address holdings in the last 30 days. Likewise, there has also been an increase in the total BTC whale holdings.
On-chain terms define a ‘whale’ as anyone who has a Bitcoin address that holds between 1,000 and 10,000 BTC tokens. These do not include those held by crypto exchanges and mining firms.
Julio Moreno, the head of research at CryptoQuant, said that whales generally purchase at a faster rate during bull markets. Likewise, during a bear market, they tend to decrease their purchases.
There had been a 9.8% increase recorded in BTC holdings of whales throughout March. In April, they continued to stack their holdings, but there was a slowdown in the rate of accumulation to 4.2%.
This was recorded on May 1st when there had been a 20% decline in the price of Bitcoin to less than $57,000 from its all-time high.
The rise
The metric had returned to 5.5% as of May 22nd, which means that whale accumulation was rising once more after the market bottomed.
Ki Young Ju, CryptoQuant CEO, noted in June that during the drastic market decline, whales had purchased a total of 47,000 BTC tokens.
Bitcoin’s price has climbed to $68,000 once more. Moreno said that whales have doubled the amount of money invested in Bitcoin since the start of the year.
It had stood at $57 billion at the beginning of the year but has now reached $122 billion. This is calculated via the ‘realized cap’ of whale owners, rather than their current market value.
This refers to the total value of the coins based on the time they were purchased. According to James Check, the total realized cap of the Bitcoin network has now climbed to $578 billion.
The bull market
The lead Glassnode analyst said that this shows just how strong the fundamentals of Bitcoin are. However, Check believes that there is room for additional growth.
He said that they had not reached the euphoria phase of the ongoing bull market. He said that they were currently between excitement and enthusiasm, but are not euphoric as yet.
This means that there could be additional whale accumulation in the next few months. However, this also depends on the momentum of the broader crypto market.
Things have certainly been going well, as the US SEC recently approved spot Ethereum ETFs. This had been considered unlikely due to which it took the market by surprise.