According to on-chain data, Bitcoin “permanent holder addresses” have amassed nearly $23 billion worth of the cryptocurrency within the last month. In a post on X dated August 7, Ki Young Ju, the founder and CEO of CryptoQuant, remarked, “I’m pretty sure something is happening behind the scenes.” This statement was prompted by a notable increase in the 30-day demand change for permanent Bitcoin (BTC) holders.
Over the past month, approximately $22.8 billion, equivalent to 404,448 BTC, has transitioned into permanent holder addresses, which Ki characterized as a clear sign of accumulation.
*Bitcoin permanent holder addresses 30-day demand change. Source: CryptoQuant*
He anticipates that within a year, various entities—including traditional financial institutions, corporations, and governments—will publicly disclose their Bitcoin acquisitions in the third quarter of 2024. In another post on X on the same day, Ki Young highlighted additional optimistic indicators, particularly regarding Bitcoin miner activity. “Miner capitulation is nearly over,” he noted, explaining that the hash rate is approaching all-time highs and that U.S. mining costs hover around $43,000 per coin. This suggests that the hash rate is likely to stabilize unless prices fall below this threshold.
He pointed out that retail investors are largely absent from the market, reminiscent of the situation in mid-2020. Furthermore, he observed a decline in activity from long-term “whale” holders—those who have held Bitcoin for over three years—who sold their assets between March and June. However, he noted that there is currently “no significant selling pressure from old whales.”
In late July, Ki highlighted the inflows into permanent holder addresses, including exchange-traded funds, clarifying that not all remaining BTC is held in custody wallets. “Whales are clearly accumulating, and it’s at an unprecedented level,” he stated.
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The trend of accumulation seems to have intensified following the market downturn on August 5, which saw BTC prices plummet to $49,800, as reported by Cointelegraph. Since then, the asset has rebounded by 14%, regaining $57,000 on August 6. Additionally, the Bitcoin ‘Fear and Greed’ index has shifted from ‘extreme fear’ to a level of 29, indicating fear but reflecting a slight improvement in market sentiment.
*Source: Bitcoin Fear and Greed Index*
As of the time of this writing, BTC was trading up 1.7% for the day at $56,836.
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