“Bitcoin whales’ appetite is back with a vengeance”

Investors who have more than 1,000 bitcoins (BTC), actors known as “whales,” have changed their behavior, generating enthusiasm in the market.

The monthly proportion of bitcoin acquired by whales has risen to its highest level in two months. As can be seen in the graph, this occurs after a sharp drop since March. Meanwhile, the total balance of these large investors continues to increase constantly so far in 2024 to new historical highs.

“The appetite of whales to buy bitcoin has returned with a vengeance,” highlighted a report by the analyst known as Ambramchart shared by the data firm. on-chain CryptoQuant. For the specialist, this “indicates that current prices are appropriate for buying and accumulating.”

In the midst of this scenario, bitcoin began trading three days ago around $71,000 (USD), its highest in two months. The price increase is partly due to greater purchases by whalesbehavior that will continue to push upwards if this continues.

This panorama takes place after the publication last week of the price index of personal consumption expenditure (PCE) in the United States. This inflation indicator, preferred by the Federal Reserve (Fed) to guide monetary policy, had the expected result, so the markets reacted upward.

“Oil is now 12% below its highs and only 7% so far this year. (…) lower oil usually reduces 10-year inflation expectations, which drives down US 10-year yields, which in turn can help drive bitcoin higher,” said the market consultancy, LondonCryptoClub.

As CriptoNoticias reported, Eyes now rest on the Fed’s comments on the interest rate decision scheduled for June 12. A demonstration that they plan to lower them this year may reinforce demand for risk assets, such as stocks, bitcoin and cryptocurrencies.

In addition, the approval two weeks ago of Ethereum exchange-traded funds (ETFs) in the United States motivated demand for cryptoassets. This is something that could accelerate as soon as these instruments are launched, for which there is no set date at the moment.

70,000 BTC have been purchased in one month

In addition to whales, permanent bitcoin investors have also been increasing their holdings. Precisely, they have added 70,000 BTC to their portfolios together over the last 30 days, as the graph shows.

Likewise, for a month now, bitcoin ETFs have increased their holdings due to increased purchases, as seen below. This confluence of factors reflects a positive scenario for the currency to exceed the all-time high price of USD 73,700 recorded three months ago.

However, according to CryptoQuant, liquidity, as measured by the supply of tether (USDT), the leading stablecoin, needs to recover to support a sustained rally in bitcoin and volatile cryptocurrencies. As the next graph shows, this is in decline so far in May.

Normally, an increase in stablecoin liquidity reflects greater capital that can enter the cryptoasset market, boosting its price. Therefore, as soon as there is a recovery, it may be an indication of the upward pressure that bitcoin needs to recover its all-time high.