According to the latest data from CryptoQuant, whales continue to accumulate Bitcoin (BTC) even though the price more than doubled in 2021.

This trend suggests that confidence in Bitcoin is increasing as the price tries to stabilize above the $50,000 mark.

Why whale confidence is important

During rising cycles, whales can make profits on their positions, especially when the futures market is very crowded.

Whales selling their shares to rebalance their portfolios can cause large price swings in the market, especially when coupled with cascading liquidations.

In this bullish cycle, data from the chain shows that whales are buying rather than selling Bitcoin, likely in anticipation of a larger rise in the future.

Ki Young Joo, CEO of CryptoQuant, said

The whales are collecting the $BTC. They’ve set up a lot of bear traps lately, but the price seems to be back at the institutional buy level, 48k. Looking at recent coinbase spending, the most spending that went into portfolio storage was 48,000. Above the chamber base exit. Source : CryptoQuant

Whales or wealthy investors may accumulate Bitcoin instead of taking profits on their positions because they may believe a super cycle could begin.

Prior to the current bull cycle, there wasn’t that much institutional interest in Bitcoin, especially from public companies and financial institutions.

Bitcoin is becoming very attractive at a time when the continued expansion of central banks’ money supply is forcing some companies to look for alternatives to cash.

In addition, William Clemente, an analyst under a pseudonym, points out that accumulation addresses are increasing, indicating a new wave of accumulation.

We seem to be in the midst of a new wave of new accumulation addresses of #Bitcoin pic.twitter.com/7TQ1NE08lH

– William Clemente III (@WClementeIII) March 3, 2021

Alignment of macro factorsfor bitcoin rally

As Leeor Shimron of Fundstrat explains, Bitcoin still has plenty of room to operate at an M1 rate.

Shimron stated that the bitcoin cycle could get very wild, suggesting that BTC is still far from its potential peak.

Bitcoin’s monetary value M1 is still far from the ATH. Given the unprecedented printing of currencies, the bull market could be about to begin. This cycle can get very wild.

Several other indicators suggest that Bitcoin’s peak in the near future is probably still a long way off.

For example, the SOPR indicator, which measures investor returns, shows that many investors have already made profits on their positions.

For the foreseeable future, this could ease pressure on bitcoin sales, which would coincide with whales continuing to buy outstanding bitcoin stocks.

Raul Pal, CEO of the Real Vision Group, is of the same opinion. He said bitcoin will eventually absorb much of the world’s capital. He said:

But this suggests that investment in technology and in particular Bitcoins (and in my opinion ALL digital assets) will continue to suck capital from all worlds over time, as people realize that this is the most efficient way to create wealth above cost.

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