CryptoQuant analyst Burak Kesmeci recently reported that the accumulation addresses of Bitcoin have significantly increased, now exceeding 2.9 million BTC. Despite market uncertainties, these addresses have steadily increased their holdings without selling, doubling their Bitcoin reserves in just 10 months. This trend highlights the broader market sentiment, with long-term investors, both individuals and institutions, showing confidence in the future of Bitcoin.
In a post uploaded on the CryptoQuant QuickTake platform, Kesmeci’s analysis delves into the definition of these accumulation addresses and why they have been so active in 2024. Unlike typical investor behavior, the analyst mentions that these addresses have never had Bitcoin outflows, indicating that they are solely accumulating. The analyst refers to them as a reflection of a long-term investment strategy, demonstrating their complete commitment to the “HODL” mindset. Kesmeci writes:
“They are not exchange addresses; they solely belong to individual or institutional investors. In the past seven years, they have had at least two transfers and have been active at least once. Essentially, these addresses are a vivid embodiment of the word ‘hodl.'”
As of January 2024, these accumulation addresses held 1.5 million BTC. However, in just 10 months, this number has nearly doubled, reaching 2.9 million BTC.
Kesmeci points out that this accumulation behavior is not new, but what makes 2024 unique is the speed and quantity of growth in these addresses. The sustained accumulation of such a high amount suggests that short-term market volatility does not affect these holders. Kesmeci also emphasizes that as early as 2018, accumulation addresses held only 100,000 BTC. By the bull market of 2021, this number had grown to 700,000, and the acceleration by 2024 is noteworthy. This rapid accumulation indicates that these addresses have confidence in the long-term value and potential of Bitcoin. Kesmeci asks, “What do these address owners know that other market participants may not?”
What does this mean for the market? The analyst concludes with a bold prediction: by the end of 2024, these addresses may hold over 3 million BTC, which, based on a Bitcoin price of $70,000, could exceed a value of $210 billion. It is worth noting that, according to the CryptoQuant analyst, this would surpass the total value of large companies such as General Electric, ranking these addresses higher in influence and strength as long-term Bitcoin holders.
Kesmeci emphasizes that this accumulation could significantly impact the stability of Bitcoin’s price and future growth. If this trend continues, the market may witness a reduction in selling pressure as these major shareholders remain committed to their positions, potentially driving long-term price increases.
Using distinctive images created by DALL-E, TradingView charts show an upward trend in BTC prices on the 2-hour chart.