Hardcore Bitcoin holders demonstrated their confidence in the cryptocurrency by adding a record $1.7 billion worth of BTC to ‘accumulation’ wallet addresses in a single day, coinciding with a drop in Bitcoin’s price below $63,000 earlier this week.
Over 27,700 BTC, valued at $1.75 billion at current prices, was sent to accumulation addresses within a 24-hour period between April 16 to 17, marking a new daily record for Bitcoin accumulation, according to data from CryptoQuant.
This surge in accumulation suggests that large, dedicated investors remain confident in accumulating and holding Bitcoin for the long term, particularly around the $63,000 price range.
Accumulation addresses are Bitcoin wallets with no previous withdrawals and a balance of over 10 BTC. They exclude wallets associated with miners and exchanges, and must have been active at some point in the last seven years.
Market analysts, including pseudonymous trader Rekt Capital, have suggested that the first few months of 2024 might be the last opportunity for investors to acquire Bitcoin at “bargain prices” before a post-halving rally event.
Rekt Capital indicated that the recent price dip was part of a “pre-halving retrace” and predicted a potential “re-accumulation phase” following the upcoming halving event scheduled for April 20.
Rekt Capital speculated that Bitcoin could enter a parabolic uptrend after breaking out from the re-accumulation phase. They suggested that historically, this phase lasted over a year, but with a potential accelerated cycle in the current market, this duration may be reduced.
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