Accumulation Strengthens for Bitcoin Wallets as Price Surges to $42K

Bitcoin accumulation wallets, currently holding an impressive 1.7 million BTC valued at $68 billion, as highlighted by CryptoQuant’s CEO Ki Young Ju, reflect a significant vote of confidence and increasing trust in the premier cryptocurrency among investors.

#Bitcoin accumulation wallets now hold 1.7M $BTC, valued at $68B. pic.twitter.com/t24v8nSVbl

— Ki Young Ju (@ki_young_ju) January 26, 2024

This growing trend of holding Bitcoin as a store of value or for long-term investment is evident in the substantial holdings within these accumulation wallets. Beyond conveying investor belief, the accumulation pattern in Bitcoin suggests a potential reduction in market supply, with the prospect of driving up prices.

A noteworthy development is the recent surge in Bitcoin inflows to accumulation wallets, reaching a 5-year peak, including transactions to custodial services like Coinbase Custody, marking a substantial milestone in the cryptocurrency’s journey.

$BTC inflows to accumulation wallets hit a 5-year peak, including transactions to custodial services like Coinbase Custody. pic.twitter.com/fW9DO9KdJl

— Ki Young Ju (@ki_young_ju) January 26, 2024

The recent dip in Bitcoin’s value can be attributed to heightened selling activities by notable holders, including sharks and whales, seeking to capitalize on profits by liquidating their holdings in the trading markets. However, the ongoing steady accumulation by other entities is anticipated to exert upward pressure on Bitcoin’s value, especially as the fourth halving event approaches in April this year.

Related: Bitcoin Whales Continue Accumulating Amidst Price Downturn

Simultaneously, the surpassing of 1 million active Bitcoin addresses indicates a growing level of participation and usage within the cryptocurrency space.