Bitcoin Holders Increase Accumulation Amidst Market Downward Trend
Bitcoin holders have continued to accumulate the cryptocurrency despite recent price declines, indicating a growing confidence in the digital asset. Recent data reveals that accumulation addresses have reached a new all-time high in terms of Bitcoin inflows despite the current downward trend in the market.
New Record of Bitcoin Inflows into Accumulation Addresses
Data from the on-chain analytics platform CryptoQuant shows that accumulation addresses received over 27,700 BTC between April 16 and 17, setting a new all-time high for these addresses in daily Bitcoin inflows. Previously, the highest amount recorded in a single day was 25,500 BTC on March 23, this year.
- March 23 record: 25,500 BTC
- February 21 record: 25,300 BTC
What are Accumulation Addresses?
Accumulation addresses are wallets with more than 10 BTC in balance and no outgoing transactions. Excluded from this category are accounts owned by centralized exchanges and Bitcoin miners. Additionally, these addresses must have received at least two incoming transactions, with the most recent occurring within the last seven years.
- No outgoing transactions
- Balance exceeds 10 BTC
Significance of Accumulation Addresses
The wallets classified as accumulation addresses are among the most bullish on Bitcoin, reflecting the strong belief long-term holders have in the cryptocurrency. This trend also indicates a strategic positioning ahead of a potential bull run, as these holders anticipate higher prices once the market gains momentum.
CEOโs Observations
Ki Young Ju, the CEO of CryptoQuant, emphasized the active nature of on-chain accumulation amidst stagnation in demand for Spot Bitcoin ETFs. This suggests that Bitcoin bulls could play a crucial role in maintaining demand levels, compensating for the lackluster performance of ETFs in the market.
Bitcoin Price Resilience and Recovery
Following reports of Israelโs retaliatory attack on Iran, Bitcoin experienced a dip below the $60,000 support level. However, the cryptocurrency displayed resilience by quickly bouncing back above $60,000, indicating strong support at this price range despite external geopolitical events.
Price Recovery and Market Strength
The swift recovery in Bitcoinโs price post the geopolitical event underscores the potential for a parabolic upswing after the current consolidation phase. Analysts suggest that the cryptocurrency has established a solid foundation around the $60,000 mark, paving the way for a bullish trajectory in the near future.
Current Market Status
At the time of writing, Bitcoin is trading around $62,000, showing an upward trend in the past 24 hours according to data from CoinMarketCap.
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