Bitcoin’s on-chain data reveals that “accumulation addresses” have been making significant purchases of the cryptocurrency this month.
Accumulation Addresses: A Closer Look
Accumulation addresses are wallets belonging to long-term Bitcoin holders (HODLers). To qualify as an accumulation address, a wallet must:
- Have no outgoing transactions, indicating only incoming purchases
- Have received at least two inflow transactions
- Hold more than 10 BTC
- Exclude exchange and miner wallets
Recent Inflows
As analyst Ali noted, Bitcoin accumulation addresses have experienced substantial inflows recently. The chart below shows the trend in Bitcoin inflows to these addresses since the beginning of the year:
[Image of CryptoQuant chart showing Bitcoin inflows to accumulation addresses]
As the chart shows, inflows have been high this month, with the metric reaching a value of 21,400 BTC on the first day. This represents a value of over $1.4 billion.
Significance
This buying activity by accumulation addresses is a positive sign for Bitcoin. It suggests that long-term holders are confident in the cryptocurrency’s future and are continuing to add to their holdings.
Price Impact
In response to this buying, Bitcoin’s price has found support and has recovered above $68,100.
