Bitcoin hodlers moved $1.7B into ‘accumulation’ wallets during the BTC dip

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On a day when Bitcoin’s price dipped under $63,000, dedicated Bitcoin investors bought an impressive amount – around $1.7 billion – and deposited it into “storage” wallets.

Approximately 27,700 Bitcoins, equal to around $1.75 billion based on current market values, were transferred to Bitcoin wallets used for long-term storage during the span of one day between April 16th and 17th. This marks a new daily record in Bitcoin transactions, as indicated by recent data from CryptoQuant.

On March 23rd of this year, the previous daily record of 25,500 BTC being transferred to accumulation addresses occurred. At that time, the Bitcoin price was approximately $63,500.

The data indicates a notable increase in purchasing activity around the $63,000 price point, implying that major, committed investors continue to trust in Bitcoin’s potential and plan to keep accumulating and hoarding it for extended periods.

A Bitcoin address with a balance exceeding 10 BTC and no prior transaction history is referred to as an “unspent large-balance address.” This type of wallet has undergone verification to exclude those linked to known Bitcoin miners and cryptocurrency exchanges.

These addresses must have also been active at some point in the last seven years.

Some market experts, among them the anonymous trader known as Rekt Capital, believe that the opening quarters of this year could represent the final opportunity for investors to purchase Bitcoin at relatively low costs, preceding a surge in value following Bitcoin’s halving event.

In a recent update on April 17, addressed to their 453,000 Bitcoin enthusiasts, Rekt Capital pointed out the striking resemblance between the current price behavior of Bitcoin and past halving events.

Rekt described the latest decline, resulting in Bitcoin dropping over 14% from its peak of $73,600 on March 13th, as a normal occurrence prior to the “Bitcoin halving correction.”

After the Bitcoin halving, expected around April 20th, experts believe the price may go through a “collection period” or “buying back” stage.

“Once Bitcoin breaks out from the re-accumulation area breakout into the parabolic uptrend.”

Previously, this stage had lasted approximately 13 months (around 385 days). But due to the current possibility of an accelerated cycle taking place, this duration could be reduced by half within the present market trend, according to Rekt.

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2024-04-19 10:36