CoinDesk Report:
CryptoQuant analyst Burak Kesmeci recently published a report stating that the number of Bitcoin accumulation addresses has significantly increased and now exceeds 2.9 million BTC. Despite market uncertainties, these addresses have steadily increased their holdings without selling, doubling their Bitcoin reserves in just 10 months. This trend highlights the broader market sentiment, indicating long-term investors’ confidence in the future of Bitcoin, both among individuals and institutions.
Kesmeci’s analysis, posted on the CryptoQuant QuickTake platform, delved into the definition of these accumulation addresses and why they have been so active in 2024. Unlike typical investor behavior, the analyst mentioned that these addresses have never had any outflows of Bitcoin, meaning they are solely accumulating. Kesmeci referred to them as a reflection of a long-term investment strategy, indicating a complete commitment to the “HODL” mentality. Kesmeci wrote:
“They are not exchange addresses; they solely belong to individual or institutional investors. Over the past seven years, they have had at least two transfers and have been active at least once. Essentially, these addresses embody the essence of the word ‘hodl.'”
As of January 2024, these accumulation addresses held 1.5 million BTC. However, in just 10 months, this number almost doubled, reaching 2.9 million BTC.
Kesmeci pointed out that this accumulation behavior is not new, but what makes 2024 unique is the speed and quantity of growth in these addresses. The continuous accumulation of such a high quantity indicates that short-term market fluctuations do not affect these holders. Kesmeci also emphasized that back in 2018, accumulation addresses only held 100,000 BTC. By the bull market of 2021, this number had grown to 700,000, making the acceleration by 2024 noteworthy. This rapid accumulation suggests that these addresses have confidence in the long-term value and potential of Bitcoin. Kesmeci asked, “What do these address owners know that other market participants might not?”
What does this mean for the market?
The analyst concludes with a bold prediction: by the end of 2024, these addresses could hold over 3 million BTC, which, based on a Bitcoin price of $70,000, would be valued at over $210 billion. It is worth noting that according to CryptoQuant’s analyst, this would place the total value of these addresses higher than that of large companies like General Electric, the 61st largest company by market capitalization, highlighting the growing influence and strength of long-term Bitcoin holders.
Kesmeci emphasizes that this accumulation could significantly impact the stability of Bitcoin’s price and its future growth. If this trend continues, the market may see a reduction in selling pressure as these major stakeholders remain committed to their positions, potentially driving long-term price growth.
Using DALL-E-generated feature image, TradingView chart of BTC price on a 2-hour timeframe.
