Bitcoin whales, significant holders of the cryptocurrency, are displaying an increased interest in accumulating more coins, indicating renewed confidence in the bull market, according to blockchain data.

This resurgence in whale activity follows Bitcoin's peak price in March and subsequent substantial market correction.

CryptoQuant, a market intelligence firm, highlighted the strong buying behavior exhibited by whales, suggesting their belief in the favorable purchasing and accumulation opportunities offered by current Bitcoin prices, despite prevailing market fears and uncertainties.

Analysts noted the uptick in the 30-day percentage change in whale address holdings, alongside a rise in the total BTC balance held by whales.

During bull markets, whales—defined as holders of Bitcoin addresses with holdings ranging from 1,000 BTC to 10,000 BTC (excluding mining entities and crypto exchanges)—tend to be more aggressive in their Bitcoin acquisitions, contrasting with reduced activity during bear markets.

In March, whales boosted their BTC holdings by over 9.8%. Although their accumulation pace slowed in April to 4.2% by May 1, aligned with Bitcoin's price drop of over 20% to under $57,000, the metric has now rebounded to 5.5% as of May 22.

CryptoQuant CEO Ki Young Ju previously highlighted that whales amassed 47,000 BTC during the sharp market dip in early May, further indicating their confidence in Bitcoin's long-term viability.

The total investment by whales in Bitcoin has notably surged from $57 billion to $122 billion since the year began, as seen through the "realized cap" metric, which considers the total value of all whale-held coins based on their purchase time rather than current market value.

Bitcoin's price recently climbed to $68,760, marking a 3% weekly increase and reflecting renewed market optimism.

Lead Glassnode analyst James Check emphasized that the Bitcoin network's total realized cap has hit a record high of $578 billion, underlining the cryptocurrency's strong fundamentals.

However, Check noted that the market has yet to enter the true euphoric phase of the bull market, suggesting that current sentiment lies between enthusiasm and excitement.

Institutional investors are also increasing their exposure to crypto assets, with nearly 40% having some level of exposure in 2023, up from 31% in 2021. A significant portion of respondents reported allocating at least 10% of their portfolio to crypto assets, compared to a smaller fraction two years ago.

Markus Thielen, head of research at 10x Research, has previously speculated that surpassing $67,500 could potentially lead to new all-time highs. Bitcoin is currently trading at $68,700, approaching the threshold for a new all-time high in U.S. dollars.

Amidst positive sentiment, some analysts, including trading firm QCP Capital, are optimistic about Bitcoin's price momentum, foreseeing a possible return to highs around $74,000.