Many Bitcoin addresses that have “never had a Bitcoin outflow before” are currently accumulating the flagship cryptocurrency at an unprecedented pace, currently holding 2.9 million BTC (equivalent to approximately $194 billion at the time of writing) We have reached the point where we are doing so.
In a newly released report, CryptoQuant analyst Burak Kesmeci said that while the total amount of BTC in “Bitcoin Accumulation Addresses” was around 1.5 million coins at the beginning of the year, that number has dropped to almost 1.5 million coins in the past 10 months. He pointed out that it had doubled.
The analyst added that these addresses have been “patiently and boldly accumulating without selling their holdings” and have never experienced any Bitcoin outflows as long as they focus on long-term investing.
According to the analyst, these Bitcoin accumulation addresses hold at least 10 BTC and are not specifically designed to replace cold storage addresses, but instead “make at least two transfers and are active at least once.” “It belongs entirely to individual or institutional investors.'' For the past 7 years.
Kesmeci also noted that back in 2018, these addresses held 100,000 BTC, and the accumulation has continued to grow ever since, with that number “soaring to 700,000 BTC” by the 2021 bull market. he added.
This year, they said “real growth happened” towards the 3 million BTC mark, but analysts expect it could happen by the end of this year, and if BTC reaches the 3 million BTC mark. If they reach that level, their total holdings will exceed the market capitalization of a giant company like General Electric. Prices are expected to rise to $70,000 by the end of the year.
Notably, earlier this year, the US Securities and Exchange Commission (SEC) approved the launch of a spot Bitcoin exchange-traded fund in the country. Total inflows into these have exceeded $20 billion so far this year, with BlackRock's iShares Bitcoin Trust (IBIT) leading the way with $22.4 billion in inflows.
The only spot Bitcoin ETFs with confirmed outflows since the beginning of the year are Hashdex Bitcoin ETF (DEFI), which lost $1.79 million, and Grayscale's GBTC ($20.1 billion outflow).
Featured image via Unsplash.
