Bitcoin Inflows to Accumulation Wallets Hit All-Time High
On-chain data reveals that Bitcoin inflows to “accumulation wallets” have reached a new all-time high, signaling a potentially bullish trend for the cryptocurrency.
What Are Accumulation Addresses?
According to Ki Young Ju, founder and CEO of CryptoQuant, accumulation addresses are those that meet the following criteria:
- No outgoing transactions, indicating that the address only receives Bitcoin.
- A balance of at least 10 BTC, equivalent to around $512,000 at current exchange rates.
- Not part of centralized exchanges or miners.
- Received more than two incoming transfers.
- Most recent transfer occurred within the past seven years, excluding dormant wallets.
Recent Inflows and Potential Implications
The chart shared by CryptoQuant shows a significant spike in Bitcoin inflows to accumulation addresses in recent weeks. During this latest surge, a record-breaking 25,300 BTC (almost $1.3 billion) flowed into these wallets.
This buying activity suggests that HODLers, or long-term investors who have never sold their Bitcoin, have been accumulating more coins. This could be a positive sign, as it indicates that these investors are confident in Bitcoin’s long-term potential and are unlikely to sell their holdings anytime soon.
Correlation with Spot ETFs and Institutional Buying
The recent surge in inflows to accumulation addresses coincides with the approval of spot ETFs last month. The previous all-time high for this metric also occurred around the same time.
This suggests that institutional investors may be contributing to the accumulation trend, as they seek exposure to Bitcoin through these ETFs.
Conclusion
The record-breaking inflows to Bitcoin accumulation wallets indicate that HODLers are actively buying and holding Bitcoin. This could be a bullish signal for the cryptocurrency, as it suggests that these investors are confident in its long-term potential.
While Bitcoin’s price has experienced a slight retracement in the past day, the overall trend remains positive, with the cryptocurrency holding above the $51,000 mark.
