Bitcoin Whales Return in Force as Bullish Sentiment Surges

As of this week, the number of wallets holding more than 1,000 BTC has climbed to 2,106, a year-to-date high. These wallets, often associated with institutional players and large individual investors, are typically viewed as market-moving entities. Their re-entry into accumulation mode has triggered a renewed sense of confidence among traders, investors, and analysts alike.

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Combined with growing optimism across key sentiment indicators and increased interest from U.S. institutional investors, Bitcoin’s outlook is starting to shift. Could this be the beginning of another bull run?

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Market Sentiment Turns Green for the First Time in Months

Bitcoin has struggled to maintain upward momentum over the past few months. Concerns around inflation, macroeconomic instability, and regulatory uncertainty have weighed heavily on the asset’s price trajectory.

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But that narrative may be changing.

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According to analyst Axel Adler, the Bitcoin Sentiment Vote-Up or Down indicator — which gauges market sentiment based on investor reactions — has turned green for the first time in four months. This signals that the majority of market participants are now optimistic, expecting BTC prices to rise in the near term.

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The shift in sentiment is more than just psychological. It’s often a powerful catalyst for trend reversals, particularly when supported by on-chain data.

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Whale Activity Hits 2025 Peak — What That Means for Bitcoin

At the beginning of 2025, there were 2,054 Bitcoin wallets holding at least 1,000 BTC. As uncertainty grew, that number dropped to 2,038. However, in the past week, that trend has sharply reversed.

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The number of large BTC-holding wallets has surged to 2,106, according to data from IntoTheBlock — the highest figure recorded this year.

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This increase suggests that whales are aggressively accumulating Bitcoin, possibly in anticipation of a larger market move. Historically, similar whale behavior has preceded some of Bitcoin’s biggest price rallies.

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Adding weight to this trend, on-chain metrics from CryptoQuant show a sustained negative Exchange Inflow Ratio over the past five days. This means whales are moving BTC away from exchanges, rather than preparing to sell — a typical signal of long-term holding or strategic accumulation.

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Institutional Investors Join the Rally

It’s not just whales returning to the market — institutional investors appear to be re-entering as well.

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The Coinbase Premium Index, which tracks the price gap between Coinbase (popular among U.S. institutions) and global exchanges, turned positive for the first time in over two weeks. This suggests that U.S.-based buyers are paying a premium to acquire BTC, signaling fresh demand from institutional players.

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When large entities across both retail and institutional segments begin aligning on bullish sentiment, it usually indicates a broader market shift — and potentially, a more sustainable rally.

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Key Resistance and Support Levels to Watch

With sentiment shifting and whale activity intensifying, analysts are eyeing important price targets for Bitcoin.

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If bullish momentum holds, BTC is expected to retest and potentially reclaim the $86,190 resistance level. Breaking past this point could open the path toward $88,500, a level not seen in months.

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However, the market remains sensitive. If enthusiasm fades or whales return to risk-off behavior, Bitcoin could see a pullback toward $81,616, a support level where previous consolidations occurred.

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The next few days will be critical, as Bitcoin attempts to build on this newfound optimism.

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Crowd Psychology: The Missing Piece?

Crypto markets are often driven by emotion as much as they are by fundamentals — and crowd psychology plays a massive role in short-term price movements.

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Now that key on-chain and sentiment indicators are aligning, confidence appears to be building across the board. The green flip in sentiment metrics is especially important. As more traders begin to believe in a potential breakout, their actions — from increased buying to holding — can create a self-fulfilling rally.

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It’s the classic feedback loop of bullish momentum: as prices rise, so does confidence, leading to more buying and less selling.

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Final Thoughts: Bitcoin at a Crossroads

Bitcoin now stands at a critical juncture. With large investors, institutional players, and sentiment indicators all pointing in the same direction, BTC could be gearing up for its next big move.

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The question is no longer whether whales are interested — they’re already back. The real question is whether the rest of the market will follow through.

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If the bullish trend continues, this could be the beginning of a renewed rally in Q2 2025. However, as always in crypto, volatility remains a factor. Traders should watch for confirmation signals and stay updated on sentiment shifts.

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