Bitrabo Editorial
The recent strong performance of Bitcoin has reignited optimism among traders and investors, who are hopeful for its future growth potential. This optimism is highlighted by a notable increase in the balances of new large BTC holders.
Rapid Accumulation of Bitcoin By New Whales
As market confidence rises, the number of Bitcoin whale wallets has dramatically increased, with major investors opting to accumulate this leading cryptocurrency. Ki Young Ju, the CEO of CryptoQuant, noted this positive trend in a recent social media update.
The increase in whale wallet balances suggests a growing confidence among institutional and high-net-worth investors in Bitcoin, which many see as a promising sign for the cryptocurrency. Whales appear to be capitalizing on BTC’s current consolidation phase and potential for future appreciation, contributing to an uptick in accumulation during a wider market recovery.
According to Young Ju, the total balance of these whale wallets, which represent a significant fraction of Bitcoin’s supply, has climbed to approximately 1.97 million BTC, marking an impressive YTD growth of over 813%.
With their holdings expanding by 813% YTD, Young Ju pointed out that new whale wallets now account for 9.3% of the total supply, valued at around $132 billion. Notably, these wallets, excluding those of exchanges and miners, each hold more than 1,000 BTC and have an average coin age of under 155 days, indicating they are likely held in custody.
Initially, due to the sheer magnitude of the data, Young Ju suspected there might be an error, considering it’s akin to institutional investors increasing their stake in Bitcoin by 8.2% within just one year. He remarked on how this influx of institutional players has diversified the Bitcoin investment landscape, signaling a maturing environment for the cryptocurrency.
Significant Growth in Active BTC Addresses Since Last Month
The rise in whale balances aligns with an impressive uptick in the number of active BTC addresses, reflecting heightened interest and engagement from investors as they position themselves for potential market shifts.
According to CryptoQuant, there’s been a noticeable increase in BTC active addresses since September, following a period of disappointing price performance in July and August where active addresses had declined.
CryptoQuant pointed out that the recent growth in active addresses has exceeded both monthly and yearly moving averages, indicating improved user engagement within the Bitcoin network. Historically, an increase in active participation is a key indicator of a bullish market trend, highlighting a revival in demand for the cryptocurrency.