Bitcoin recently went through a retracement after reaching a high of $53,000 on February 20. Despite this dip, Bitcoin whales have remained unfazed and have actually taken advantage of the situation to accumulate more of the leading digital asset. According to Ki Young Ju, the founder and CEO of Crypto Quant, inflows into accumulation addresses have surged to an all-time high of 25,300 BTC.
Accumulation addresses are wallets that have no outgoing transactions and hold a balance exceeding 10 BTC. These addresses do not include accounts associated with centralized exchanges or miners. Additionally, accumulation addresses have received at least two incoming transactions, with the most recent one occurring within the past 7 years. Essentially, these addresses signify a bullish stance on Bitcoin and are often referred to as the ultimate ‘Bitcoin Diamond Hands.’
The spike in inflows into accumulation addresses indicates a growing trend among investors to stack up their BTC holdings in anticipation of the upcoming bull run. This strategic accumulation is expected to pay off post the Halving event, which is projected to kickstart the next surge in Bitcoin’s price.
Michael Saylor’s recent declaration that he has no plans to sell any of MicroStrategy’s Bitcoin holdings reinforces the confidence of Bitcoin whales in the digital asset. Saylor views Bitcoin as the ultimate exit strategy, positioning the cryptocurrency as a long-term store of value.
The launch of Spot Bitcoin ETFs, popularly known as ‘The Nine,’ has been met with significant success. These ETFs recently recorded their highest trading volume since their inception, with a combined trading volume of approximately $2 billion. Notably, VanEck, WisdomTree, and Bitwise Bitcoin ETFs broke their personal records, with VanEck’s Bitcoin ETF witnessing a substantial 14x increase in its daily average.
Eric Balchunas, a Bloomberg analyst, highlighted the impressive performance of VanEck’s Bitcoin Trust ETF, which saw a staggering 50,000 trades on February 20. This surge in trading activity starkly contrasts with just 500 trades recorded on February 16, indicating a significant spike in interest from retail investors rather than institutional players.
As of the latest data from CoinMarketCap, Bitcoin is currently trading around $51,500, reflecting a slight downturn in the past 24 hours. Despite this short-term fluctuation, the overall sentiment surrounding Bitcoin remains positive, driven by the growing interest and accumulation trend among whales.
The increasing inflows into accumulation addresses, coupled with significant developments in the Bitcoin ETF market, underscore the growing confidence and bullish outlook on Bitcoin among investors. As the digital asset continues to attract institutional interest and retail participation, the stage is set for a potential surge in Bitcoin’s price in the near future. Investors are advised to conduct thorough research and due diligence before making any investment decisions in the volatile cryptocurrency market.