Bitcoin recently surged past $69,000 amid bullish sentiment with Crypto Fear and Greed Index hitting 70.
Bitcoin accumulation addresses, which have never sold any BTC, now hold around 2.9 million BTC, according to Burak Kesmeci, a verified CryptoQuant analyst. He notes that the total amount of BTC held in these addresses has been up almost 50% year-to-date.
The data shows that the trend of accumulating Bitcoin for the long term has been gaining momentum in recent years, especially during periods of price appreciation. According to the analyst, back in 2018, only 100,000 BTC was held in accumulation addresses.
Major investors are piling into BTC. With higher prices feeding positive price action, Bitcoin might be headed even higher.
BTC Blasts Higher
The number started to surge in 2021, the bull market that saw Bitcoin topped $68,300. The number of Bitcoins held in accumulation addresses hit 700,000 that year. But the major growth in accumulation addresses happened in 2024.
The analyst says the number of BTC held in those addresses grew from 1.5 million on January 1, 2024 to 2.9 million BTC as of now. According to him, those are “the living embodiment” of the word “hodl.” Those addresses reportedly have not been associated with exchanges and been active over the past seven years.
The growth in accumulation came at a time when Bitcoin surged in anticipation of the SEC’s decision on US spot Bitcoin ETFs. Following the approval, Bitcoin established a new record high of above $73,000 in late March, according to CoinGecko data.
The CryptoQuant analyst suggests that investors are adopting a long-term holding strategy for Bitcoin based on the growth. If this trend continues, the total value of Bitcoin holdings could exceed 3 million, bringing their total value to over $200 billion by the end of this year. This would make those addresses comparable in value to large corporations.
Staking!
Data from Bitcoin Treasuries shows that public companies now hold 363,166 BTC as of October 21 while private firms hold 403,301 BTC. MicroStrategy, led by Bitcoin advocate Michael Saylor, is at the forefront with over 250,000 BTC in its holdings, worth around $39.6 million at current prices.
Big corporations like MicroStrategy and Tesla still own a big BTC bag. MicroStrategy plans to scoop more Bitcoin using various capital market instruments. Saylor previously said that he aimed to turn the company into a Bitcoin bank. He predicted Bitcoin’s value could reach millions per coin, potentially pushing MicroStrategy’s valuation to $300-400 billion or even $1 trillion.
Some smaller firms, such as Japanese investment entity Metaplanet, are embracing MicroStrategy’s Bitcoin playbook and adding more Bitcoin to its treasuries.
Not only that, several Bitcoin ETFs are also continuing their buying spree. US spot Bitcoin ETFs, which launched in January this year, have already accumulated around 958,000 BTC and are now well on track to hit the 1 billion milestone. These funds alone are approaching the number of BTC held by Bitcoin’s creator Satoshi Nakamoto.
Bitcoin To New Highs?
Bitcoin is changing hands at around $67,500, down 2.4% over the past 24 hours, per CoinGecko. The flagship cryptocurrency experienced a major surge yesterday, hitting a high of $69,500, but it quickly retraced below $68,000 during the day.
The correction also wiped out last week’s gains, but the general market sentiment remains bullish. According to Alternative.me, the Crypto Fear and Greed Index dropped from 73 to 70, staying in the greed zone.
Standard Chartered analysts suggest that the upcoming US presidential election and strong ETF demand could boost Bitcoin’s prices to its previous high. However, some analysts warn about the market volatility as the event approaches, coupled with the ongoing globally geopolitical tensions.
If there is a liquidity event, prices may struggle to continue higher. Cryptos remain exposed to numerous risks, or regulatory action in major markets, like the USA.
