Bitcoin, the leading cryptocurrency, has been experiencing significant volatility in recent weeks. Despite this volatility, staunch holders of the asset have recently added approximately $1.7 billion worth of Bitcoin to wallet addresses used for accumulation. These holders made these deposits on a day when the asset’s value declined to trade under $63,000.
According to data from CryptoQuant, the $1.7 billion worth of Bitcoin represents around 27,000 BTC in the current market. These transactions, which took place between April 16 and 17, set a new daily record for Bitcoin.
The previous record of 25,000 BTC was set on March 23 when the price of Bitcoin was around $63,500. This data suggests that traders have been buying the asset when the price is in that range and that long-time holders of Bitcoin are not panicking due to the volatility.
An accumulation address is a Bitcoin wallet that only has a history of deposits and holds about 10 BTC. The addresses belonging to exchanges and miners have been excluded from the list of accumulation addresses. These addresses have also been active in the market at some point over the past seven years. With the halving event approaching, there has been much discussion surrounding it.
A pseudonymous trader known as Rekt predicts a positive rally after the halving. According to Rekt, this is the final opportunity for traders to buy a significant amount of Bitcoin before its post-halving rally. The trader believes that Bitcoin is currently undergoing the same cycle as in its previous halvings.
Rekt suggests that the recent price correction is a pre-halving ritual, and expects the asset to make a significant comeback. It is worth noting that Bitcoin experienced a 14% dip after reaching an all-time high on March 13.
With the upcoming halving scheduled for April 20, Rekt believes that Bitcoin could enter a re-accumulation phase. Once Bitcoin moves past this phase, it is expected to enter a parabolic uptrend. Rekt mentions that historically, this phase has lasted just over a year (approximately 385 days), but with the potential for an Accelerated Cycle in this market cycle, the duration may be shortened.