While the price of Bitcoin recently revisited $49K, investors with long-term outlooks have continued to top up their holdings, accumulating over $23 billion in BTC.
According to Ki Young Ju, founder of analytic platform CryptoQuant, a whooping 404,448 BTC has moved to permanent holder addresses over the past 30 days, signaling a significant accumulation phase.
“I’m pretty sure something is happening behind the scenes.”
I'm pretty sure something is happening behind the scenes.
404,448 #Bitcoin have moved to permanent holder addresses over the past 30 days, and it's clearly accumulation.
We'll know within a year. https://t.co/Ip0jow2pGN pic.twitter.com/OOxuWcyxJu
— Ki Young Ju (@ki_young_ju) August 6, 2024
Going by Bitcoin’s current value of $57,400, the BTC tokens now stashed in long-term holder wallets amount to a staggering $23,215,315,200 ($23.21 billion). This observation suggests that long-term holders are confident in Bitcoin’s future performance despite recent price volatility.
Bitcoin Accumulation by Permanent Holders
The accompanying CryptoQuant chart reveals the relationship between Bitcoin’s price and the 30-day demand change in permanent holder addresses. Notably, the chart highlights significant accumulation periods, including late 2020, early 2021, 2022, and mid-2024.
The most recent peak shows over 400,000 BTC now resides in permanent holder addresses, the highest level of accumulation observed in the chart.
Notably, March 2024 saw significant accumulation of over 300,000 BTC, correlating with a brief surge in price. The CryptoQuant CEO has also previously noted an instance in July when 358,000 BTC moved to permanent holder addresses, with global spot ETF inflows reaching 53,000 BTC.
Who’s Accumulating Bitcoin?
In a follow-up update, Ki Young Ju hinted at the entities behind the increased BTC assets going to accumulation addresses. He suggested that within a year, traditional financial institutions, governments, and other prominent entities will disclose their acquisition of BTC during the Q3 market dip.
As a result, he anticipates that retail investors will regret not capitalizing on the low prices and being too focused on the selling pressure in the market without considering those buying BTC.
Accumulation/Distribution Indicator
Notably, Young Ju’s observation of BTC accumulation is supported by the steady rise in the Accumulation/Distribution (A/D) indicator from late 2023 to mid-2024. This indicates more buying pressure than selling pressure despite price volatility.
The A/D indicator, which measures the cumulative flow of money into and out of an asset, shows that despite the recent price correction, the A/D line has remained stable at around 4.327 million.
This stability suggests that long-term holders are not selling off in large quantities and indicates strong confidence in Bitcoin’s future performance.
A/D chart from TradingViewUltimately, it is also important to recall in July, the number of wallets holding at least 10 BTC increased by 261, bringing the total to 152,000—the highest count since May 2021.
This surge in large-holder wallets contrasts sharply with the behavior of small traders, who have been selling off their holdings, further emphasizing the confidence of significant investors in Bitcoin’s long-term value.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
