Bitcoin Surge Predicted as 404,448 BTC Locked in Permanent Addresses

In the dynamic world of cryptocurrency, Bitcoin has once again proven its ability to captivate investor interest. As the price of Bitcoin recently revisited the $49K mark, long-term investors have remained undeterred by its turbulent price fluctuations. They’ve continued to accumulate Bitcoin, with over $23 billion in BTC amassed in permanent holder addresses over the past month. This significant accumulation has spurred speculation and excitement among analysts and investors alike.

Massive Bitcoin Accumulation by Long-Term Holders

The latest data from CryptoQuant, an analytic platform, indicates that an astonishing 404,448 BTC has transitioned to permanent holder addresses in the past 30 days. According to Ki Young Ju, the founder of CryptoQuant, this massive movement signals a clear accumulation phase. Ju commented, “I’m pretty sure something is happening behind the scenes.” This substantial transfer of BTC suggests a widespread confidence among long-term holders in Bitcoin’s future potential despite recent price volatility.

Bitcoin’s Current Value and Holder Confidence

At the current value of $57,400 per Bitcoin, the BTC stashed in these long-term wallets amounts to a staggering $23,215,315,200 ($23.21 billion). This observation underscores that long-term holders are betting on Bitcoin’s robust performance down the line, undeterred by recent market fluctuations.

Historical Accumulation Trends

The CryptoQuant chart showcases the interplay between Bitcoin’s price and the 30-day demand change in permanent holder addresses. Noteworthy periods of accumulation are highlighted, including:

• Late 2020
• Early 2021
• 2022
• Mid-2024

The latest period stands out, with over 400,000 BTC now residing in permanent holder addresses, marking the most significant peak in the observed data.

Recent Accumulation Peaks

In March 2024, a significant accumulation of over 300,000 BTC was recorded, correlating with a brief price surge. Furthermore, in July, 358,000 BTC moved to permanent holder addresses, corresponding with global spot ETF inflows reaching 53,000 BTC.

Who Is Accumulating Bitcoin?

Ki Young Ju speculates that traditional financial institutions, governments, and other major entities are responsible for this increase in BTC accumulation. He theorizes that within a year, these entities will publicly disclose their acquisitions during the Q3 market dip. Retail investors, focused on selling pressure without considering the larger entities buying BTC, might regret not taking advantage of the low prices.

For further reading, explore insights on [CryptoQuant’s website](https://cryptoquant.com/) and see their detailed data on Bitcoin accumulation trends.

Indicators of Strong Buying Pressure

Young Ju’s observations are supported by the steady ascent of the Accumulation/Distribution (A/D) indicator from late 2023 to mid-2024. This indicator, which measures the cumulative flow of money into and out of an asset, highlights:

• Stable A/D Line: Despite recent price corrections, the A/D line remained steady at around 4.327 million.
• This stability suggests that long-term holders are maintaining their positions, indicative of strong confidence in Bitcoin’s future performance.

Rise in Significant Holder Wallets

In July, the number of wallets holding at least 10 BTC increased by 261, bringing the total to 152,000. This is the highest count since May 2021 and indicates a surge in large-holder wallets. On the contrary, small traders have been offloading their holdings, emphasizing the confidence of significant investors in Bitcoin’s long-term value.

Conclusion: Implications for the Future

The recent accumulation of over 404,448 BTC by long-term holders underscores the prevailing confidence in Bitcoin’s future. The alignment of various indicators, such as the A/D indicator and the increase in significant holder wallets, further solidifies the notion that major investors are preparing for a bullish future. Considering these factors, investors should keep a close watch on the evolving trends and movements in the Bitcoin market.

For comprehensive understanding and decision-making, readers are encouraged to further research and evaluate the ongoing trends. Some valuable sources for further reading include [CoinDesk](https://www.coindesk.com/) for updated news on cryptocurrency markets and [CryptoQuant](https://cryptoquant.com/) for in-depth analytics.

Disclaimer: This content is for informational purposes and should not be considered financial advice. The views expressed may include the author’s personal opinions and do not reflect The Crypto Basic’s opinions. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.