Unseen Surge in Bitcoin Stockpiling Addresses Amidst Potential Price Adjustments
Bitcoin accumulation addresses are witnessing an unparalleled influx of Bitcoin (BTC), following its extraordinary ascension and subsequent pullback from its peak value of $69,000. Data from CryptoQuant reveals that these addresses are experiencing daily inflows of 38,000 BTC, pushing their total holdings to an all-time high of 1.5 million BTC. These Bitcoin accumulation addresses are identified by their ‘acquire and hold’ strategy, and are demonstrating robust demand. This increase is associated with the steady demand from Bitcoin spot exchange-traded funds (ETFs). Excluding GBTC, these ETFs have accumulated roughly 360,000 BTC, accounting for about 1.8% of the total Bitcoin supply. The cryptocurrency market appears to be transitioning into a stage where new investors are buying BTC from older ones at higher rates. This phenomenon is indicated by a decrease in the Bitcoin supply that has remained static for over a year, now accounting for 68%, down from 70.5% in November 2023. Despite the record inflow, there’s a looming risk of a short-term price correction. This is attributed to the fact that the increase in BTC prices has been too rapid in comparison to essential on-chain indicators. Moreover, Bitcoin miners are currently enjoying significant profits, and short-term investors’ unrealized profit margins are exceeding ‘extreme’ levels. Some of these investors have already started offloading their assets, leading to heightened selling pressure in the market. Bitcoin accumulation addresses remain a key focus in this unfolding scenario.
Not financial advice. Always be safe and secure when dealing with cryptocurrency. Never send anyone your private key. Always Do Your Own Research..DYOR..DYOR..DYOR!
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