On-Chain Data Shows Bitcoin Accumulation Wallets Reaching All-Time High
Recent on-chain data reveals that Bitcoin inflows towards accumulation wallets have hit a new all-time high. This is a positive sign for the cryptocurrency and its investors. The information comes from CryptoQuant’s founder and CEO, Ki Young Ju.
Understanding Accumulation Addresses
Accumulation addresses are wallets that meet specific criteria, including:
- No outgoing transactions
- A balance of at least 10 BTC (around $512,000)
- Not being affiliated with centralized exchanges or miners
- Having received more than two incoming transfers in its lifetime
- The most recent transfer occurring within the past seven years
The chart shared by Ki Young Ju shows the Bitcoin inflow data for these accumulation addresses over the years, with a recent spike indicating a new record of 25,300 BTC (almost $1.3 billion) flowing into these wallets.
Implications for Bitcoin HODLers
This increase in accumulation addresses suggests that long-term holders of Bitcoin have been buying significant amounts recently. It also indicates that these HODLers are likely to continue holding onto their coins, further reducing the available supply.
BTC Price Movement
In the past day, Bitcoin’s price has retraced towards the $51,100 mark after facing some struggles.
Hot Take: Increased Inflows to Accumulation Wallets Bode Well for Bitcoin
The surge in Bitcoin inflows towards accumulation wallets is a bullish sign for the cryptocurrency. It indicates strong buying activity from long-term holders and potential institutional investors. With these coins being locked away, the available supply of Bitcoin decreases, which can contribute to price appreciation in the future. As a crypto enthusiast, you should keep an eye on these accumulation addresses as they provide valuable insights into market trends and investor behavior.
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