Bitrabo Editorial
A recent analysis by CryptoQuant’s Burak Kesmeci has highlighted a notable increase in Bitcoin accumulation addresses, which now hold over 2.9 million BTC.
These addresses have continuously expanded their Bitcoin holdings without selling, even amid market fluctuations, having doubled their reserves in the past ten months.
This trend reflects a larger sentiment in the market, showcasing that both individual and institutional long-term investors are optimistic about Bitcoin’s future.
Bitcoin Accumulation Growth in 2024
Kesmeci’s insights on the CryptoQuant QuickTake site analyze the factors driving the activity of these accumulation addresses throughout 2024.
The analyst observed that these addresses have never liquidated any Bitcoin, instead opting for continuous accumulation. He describes them as prime examples of a long-term investment approach, embodying the “HODL” philosophy. Kesmeci stated:
These are not exchange addresses; they are owned by individual or institutional investors. They have conducted at least two transfers and have been active at least once in the last seven years. These addresses truly represent the spirit of “hodl.”
At the beginning of 2024, these addresses accounted for 1.5 million BTC, which almost doubled to 2.9 million BTC within just ten months.
Kesmeci notes that while this accumulation trend is not new, the speed and scale of growth in 2024 stand out.
The report indicates that these significant accumulation patterns suggest that short-term market fluctuations do not sway these holders. Kesmeci also noted that back in 2018, such addresses held a mere 100,000 BTC.
During the 2021 bull market, this figure rose to 700,000, and in 2024, the growth has been particularly pronounced. This rapid accumulation signals a strong belief in Bitcoin’s long-term value and prospects. Kesmeci poses the question, “What insights do these address holders have that the broader market might lack?”
Market Implications
Kesmeci predicts that by the close of 2024, these addresses might hold over 3 million BTC, potentially valued at more than $210 billion if BTC reaches $70,000.
This would place the total value of these holdings above that of significant corporations like General Electric, emphasizing the strengthening role and influence of long-term Bitcoin investors.
Kesmeci stresses that such accumulation trends could greatly affect Bitcoin’s price stability and future expansion. If current patterns persist, the market may experience a decrease in selling pressure, as these substantial holders remain committed, potentially fueling a prolonged price rally over time.
Featured image created with DALL-E; Chart sourced from TradingView.