Bitcoin enthusiasts who are committed to holding onto their BTC for the long term have added a record $1.7 billion worth of the cryptocurrency to their “accumulation” wallet addresses in just one day. This surge in accumulation occurred as the price of Bitcoin dropped below $63,000 earlier this week.
According to data from CryptoQuant, more than 27,700 BTC, which is equivalent to $1.75 billion at current prices, was sent to accumulation addresses in a single 24-hour period between April 16 and 17. This sets a new daily record for Bitcoin. The previous record of 25,500 BTC being sent to accumulation addresses in one day was set on March 23, when the price of Bitcoin was around $63,500.
This data indicates that there is a high level of motivated buying occurring around the $63,000 range. It suggests that large, dedicated investors have confidence in accumulating and holding Bitcoin for the long term. Accumulation addresses are Bitcoin wallets that have not had any previous withdrawals and hold a balance of over 10 BTC. These addresses have been carefully selected to exclude wallets associated with Bitcoin miners and cryptocurrency exchanges. Additionally, these addresses must have been active at some point in the past seven years.
Some market analysts, including pseudonymous trader Rekt Capital, have suggested that the first few months of this year may be the last opportunity for investors to acquire Bitcoin at “bargain prices” before a post-halving rally occurs. In a post to their 453,000 followers on April 17, Rekt Capital stated that the current Bitcoin price action is following a similar pattern to previous halving cycles. They explained that the recent dip in price, which saw Bitcoin fall more than 14% from its all-time high of $73,600 on March 13, is a normal part of a “pre-halving retrace.” Rekt Capital predicted that Bitcoin could enter a “re-accumulation phase” after the halving event, which is scheduled for April 20.
Rekt Capital added that historically, this phase has lasted just over a year (about 385 days). However, with a potential accelerated cycle occurring in the current market, this timeframe could be cut in half.