Unprecedented Bitcoin Demand Surpasses Miner Issuance
In a recent post on X, CryptoQuant head of research Julio Moreno highlighted the remarkable growth in demand for Bitcoin, particularly from long-term holders. These holders, also known as “accumulation addresses,” have only bought BTC without any history of selling. The increase in their balances signals a bullish sentiment as it suggests a decrease in available trading supply of the asset.
Bitcoin Accumulation Addresses Show Strong Demand
The growth in these accumulation addresses’ balances, as shown in the chart, surged in 2020 and has continued to rise consistently over the years. On the other hand, Miner issuance data, representing the amount of Bitcoin minted by miners, has remained relatively constant with occasional significant drops due to halving events.
- Permanent holders or accumulation addresses only buy BTC
- BTC supply becomes illiquid over time
- Buying from HODLers signals bullish sentiment
Miner Issuance and Bitcoin Halving Events
Miners create new BTC by solving blocks and receiving block rewards. These rewards contribute to the cryptocurrency’s circulating supply and are crucial for the network’s operation. The issuance data shows periodic drops due to halving events, a factor that impacts the balance between supply and demand in the market.
- Block rewards are essential for increasing BTC supply
- Halving events occur roughly every four years
- Halving events lead to a reduction in block rewards
Strong Demand from Accumulation Addresses
While demand from accumulation addresses has been robust since 2020, recent data indicates a significant uptick surpassing miner issuance levels. This suggests that long-term holders are acquiring more BTC than miners are producing, indicating a strong demand trend in the market. The emergence of Bitcoin spot ETFs is also contributing to this increased demand, attracting traditional investors to the crypto space.
- Accumulation addresses exhibit a surge in buying
- HODLers acquire more BTC than miners produce
- Bitcoin spot ETFs attract traditional investors
Bitcoin Price Movement
As of the latest update, Bitcoin is trading at approximately $68,400, recording a 4% increase in price over the past week. The price chart reflects this positive momentum in the crypto market.
Hot Take: BTC Demand Surpasses Miner Issuance
On-chain data shows that demand for Bitcoin from HODLers is currently outpacing miner issuance for the first time in history and by quite a lot.
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