Key Notes
- Bitcoin accumulation addresses spiked by 101% to hit 262,000 BTC from 160,000 BTC.
- More than 50,000 BTC were added in a day amid the booming accumulation.
- Analysts believe that growth in Bitcoin ETF flows will continue this trend.
On-chain data from analytics platform CryptoQuant shows that the number of addresses HODLing Bitcoin
BTC
$103 084
24h volatility:
1.7%
Market cap:
$2.06 T
Vol. 24h:
$61.37 B
has seen a notable spike to 262,000. A few weeks ago, this figure was just around 130,000, suggesting that the current value is a 101% increase from its previous level. Darkfost, a CryptoQuant analyst, highlighted that this spike happened within two months.
50,000 BTC Added to Accumulator Addresses in a Day
Addresses accumulating BTC were reported to have hit record levels, with more than 375,000 BTC accumulated over a 30-day change. CryptoQuant’s Darkfost noted that the volume of BTC purchased by these accumulator addresses has hit a new All-time High (ATH).
According to the shared chart, the monthly average has gone from 130,000 to 262,000 BTC.
This is more than a 100% increase within two months, and the trend is accelerating. On November 5 alone, more than 50,000 BTC were added by large Bitcoin addresses. Clearly, these entities are not affected by the slowdown in overall demand. For perspective, these accumulator addresses do not offload their holdings; rather, they engage in more purchases.
Darkfost listed a number of other characteristics of an accumulator address. “Must have made a transaction within the last 7 years – Known CEX and miner addresses are excluded – No smart contract addresses,” the analyst wrote.
“We can therefore associate this type of address with long-term holder behavior. and some have no doubt and continue to fill their wallets. The growth of ETFs is also very likely accelerating this trend.”
Bitcoin ETF Growth Could Push Positive Trend
Meanwhile, the CryptoQuant analyst believes that the growth of Exchange Traded Funds (ETFs) could contribute to the acceleration of this trend.
Unfortunately, this aspect of the market is currently recording outflows. On Nov. 4, Bitcoin ETFs recorded a net outflow of $186.5 million, coinciding with the period when BTC dropped to $104,000.
CryptoQuant has observed that short-term Bitcoin holders have been the most active sellers since Oct. 10. On this basis, it would be difficult for the Bitcoin ecosystem to record sustained growth.
At the same time, it could be a signal of early repositioning for a potential BTC price rebound. According to CoinMarketCap data, Bitcoin is currently trading at $102,884.51, despite being up by 0.96% in 24 hours.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
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Source: https://www.coinspeaker.com/bitcoin-accumulation-addresses-jump-101-262000-details/
