Bitcoin, the leading cryptocurrency, has been experiencing significant volatility in recent weeks. Despite this volatility, devoted holders of the asset have added approximately $1.7 billion worth of Bitcoin to accumulation wallet addresses. These substantial deposits were made on a day when the asset’s value dropped below $63,000.
According to data from CryptoQuant, these deposits amount to around 27,000 BTC in today’s market. The transactions took place between April 16 and 17, setting a new daily record for Bitcoin.
The previous record of 25,000 BTC was set on March 23, when the price of Bitcoin was around $63,500. This data indicates that traders have been buying the asset when it is in that price range, and it suggests that long-term holders of Bitcoin are not panicking in response to the volatility.
Accumulation addresses are Bitcoin wallets that have a history of only receiving deposits and typically hold around 10 BTC. Exchanges and miners’ addresses have been excluded from this list of accumulation addresses. These addresses have also been active in the market over the past seven years, and there has been much discussion about them in light of the upcoming halving event.
A pseudonymous trader known as Rekt predicts a positive rally after the halving. Rekt believes that this is the final opportunity for traders to acquire a significant amount of Bitcoin before the post-halving rally begins. The trader notes that the asset is currently following the same pattern as it has in previous halvings.
Rekt suggests that the recent price correction is a pre-halving ritual and expects Bitcoin to experience a significant upward push. Notably, Bitcoin experienced a 14% dip after reaching an all-time high on March 13.
With the halving scheduled for April 20, Rekt believes that Bitcoin could enter a re-accumulation phase. Once Bitcoin exits this stage, it is expected to enter a parabolic uptrend. Rekt states, “Historically, this phase has lasted just over a year (approximately 385 days), but with a potential accelerated cycle occurring right now, this figure may be halved in this market cycle.”
