Accumulation Surge
On-chain data reveals that Bitcoin addresses with zero sales history, known as “accumulation addresses,” made significant purchases before the recent price rally. These addresses represent long-term holders (HODLers) who have never sold their Bitcoin.
To qualify as an accumulation address, it must meet specific criteria:
- At least two incoming transactions
- Last transaction within the past seven years
- Holding over 10 BTC
Major Inflows
On May 15th, accumulation addresses saw a massive inflow of 17,800 BTC, worth approximately $1.1 billion at the time. This influx coincided with the start of Bitcoin’s recovery.
Smart Money Investors
Analysts speculate that these HODLers may have anticipated the rally and bought at lower prices. The accumulation indicator has previously signaled similar buying sprees that preceded price surges.
Payoff for Hodlers
The accumulation has paid off handsomely for these HODLers, as their stack is now worth over $1.24 billion.
Current Price
As of writing, Bitcoin is trading around $69,600, up 13% over the past week.
