Bitcoin Investors Are Accumulating More Cryptocurrency
Recent data analysis reveals that dedicated Bitcoin investors, known as accumulation addresses, have been increasing their holdings of the cryptocurrency. This group of investors consists of long-term HODLers who have been actively acquiring more Bitcoin in recent times.
Accumulation addresses are wallets that have only received incoming transfers and have not engaged in any selling activities. These addresses must meet specific criteria to be considered part of this group, including holding a balance of at least 10 BTC and having received at least two inflow transactions.
Excluded Wallets From Accumulation Addresses
It is important to note that certain wallet addresses, such as those associated with exchanges and miners, are excluded from the accumulation addresses category. This is because these entities represent the sell-side of the market, and their activities do not align with the HODLing strategy of long-term investors.
- Exchange and miner wallets are excluded
- Criteria for accumulating addresses
- Makeup of the HODLer cohort
Locked Supply and Inactive Wallets
The supply held by accumulation addresses is considered to be tightly locked in the hands of long-term investors. This reduces the available supply in the market and contributes to the scarcity of Bitcoin. Additionally, wallets that have not received any inflows for more than seven years are excluded from this group, as they are likely lost or inactive.
- Locked supply and scarcity
- Exclusion of inactive wallets
- Effect on available supply
Increasing Bitcoin Inflows to Accumulation Addresses
An analysis of on-chain data shows a significant increase in Bitcoin inflows to accumulation addresses since the beginning of the year. This trend indicates that long-term investors have been actively accumulating more Bitcoin, with a notable spike in inflows observed recently.
- Analysis of on-chain data
- Notable increase in Bitcoin inflows
- Recent spike in accumulation
Positive Impact on Bitcoin Price
The surge in Bitcoin inflows to accumulation addresses is a positive sign for the cryptocurrency market. This influx of investment from long-term investors indicates confidence in Bitcoin’s long-term potential and could contribute to price stability and growth in the future.
- Confidence in Bitcoin’s potential
- Long-term impact on price
- Market stability and growth
Bitcoin Price Recovery
Following the recent increase in Bitcoin inflows to accumulation addresses, the price of Bitcoin has experienced a recovery. The cryptocurrency has surpassed the $68,100 level and has shown signs of upward momentum in response to the increased investment from long-term HODLers.
- Price recovery after influx
- Bitcoin surpasses $68,100
- Positive momentum in the market
Hot Take: Bitcoin Accumulation Addresses Show Increased Confidence in Long-Term Potential
Bitcoin on-chain data reveals that accumulation addresses have been actively acquiring more cryptocurrency, signaling their confidence in Bitcoin’s long-term potential. This influx of investment from dedicated HODLers bodes well for the cryptocurrency’s future price stability and growth.
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