The Increase in Bitcoin Accumulation Addresses Indicates a Positive Trend
Observing the behavior of investors in 2024, it appears that a strategy of holding onto Bitcoin (BTC) has become increasingly popular. This is evident in the significant rise of BTC accumulation addresses, which now collectively hold 2.9 million coins, amounting to over $194 billion. This represents a substantial 93% increase from the holdings recorded in January.
Analysis from CryptoQuant’s Burak Kesmeci reveals that in January 2024, these addresses possessed just 1.5 million Bitcoins. Within a span of 10 months, this number nearly doubled, showcasing their commitment to accumulation without engaging in massive sell-offs.
Interpreting the Data
Comparing the current accumulation levels to those of previous years provides valuable context. Back in 2018, BTC accumulation addresses held a mere 100K coins. By the 2021 bull run, this figure had surged to 700K coins. However, the true growth was witnessed in 2024, where a notable 93% surge occurred from 1.5 million to 2.9 million coins. This substantial increase raises questions about whether holders anticipate further appreciation in BTC’s value.
The introduction of U.S. spot BTC ETFs in January 2024 likely played a crucial role in boosting confidence and driving the surge in BTC accumulation addresses. As of October 18th, these ETFs held 961K BTC, valued at over $65 billion.
Following the approval of the U.S. spot BTC ETFs, there was a notable surge in demand for BTC among U.S. investors in Q1 2024, as evidenced by spikes in the Coinbase Premium Index. This optimism propelled BTC to reach an all-time high above $73K in March, leaving many to wonder if a similar trend will transpire in the future.
As of recent data, investor interest in Q4 appears to be slightly lower compared to the remarkable demand witnessed in Q1. Nevertheless, BTC is currently priced at $66.3K, approximately 11% below the peak recorded in March.