Investor confidence in Bitcoin is on the rise, evidenced by a spike in new whale wallets and a greater number of active addresses, indicating possible market expansion.
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Bitcoin's recent price performance and its ability to navigate past obstacles have bolstered investor confidence, resulting in a notable increase in the number of new large holders. This trend indicates a growing optimism about Bitcoin’s long-term growth potential.
In a recent update, Ki Young Ju, CEO of CryptoQuant, pointed out the significant rise in whale wallets, where large investors are rapidly accumulating Bitcoin (BTC). This uptick in whale activity is seen as a positive indicator for BTC's future, suggesting that institutional and high-net-worth investors are optimistic about the cryptocurrency. Many of these investors are capitalizing on Bitcoin’s current consolidation phase to build their positions in anticipation of future gains.
According to Young Ju, the total balance in these whale wallets has surged to approximately 1.97 million BTC, reflecting an impressive 813% year-to-date (YTD) growth. These new whale wallets now account for 9.3% of the total BTC supply, valued at around $132 billion. This level of accumulation is akin to institutional investors acquiring significant stakes in a company, demonstrating their belief in Bitcoin's market resilience.
Young Ju noted that many of these whale wallets do not include exchanges and miners and typically hold over 1,000 BTC each. The average age of coins in these wallets is under 155 days, indicating they are relatively new holdings, likely associated with custodial services. The swift rise in whale activity prompted Young Ju to initially scrutinize the data, but the figures reflect a maturing environment for Bitcoin, with institutional players diversifying the market.
Additionally, the number of active BTC addresses has seen a sharp increase, signaling heightened interest and activity among crypto investors. Since September, Bitcoin's network has experienced a surge in active addresses, indicating a renewed demand for the cryptocurrency. This rise follows a period of price weakness in July and August, when active addresses had declined.
The growth in active addresses has surpassed both monthly and yearly averages, suggesting enhanced user engagement. Historically, such increases in user participation have been strong indicators of a bullish cycle, implying that the network may be poised for a market shift.
In summary, the rising whale activity alongside the increase in active addresses indicates a stronger, more engaged market as investors position themselves for potential future gains. These trends reflect the broader optimism surrounding Bitcoin and its long-term prospects.