Bitcoin has recently seen a retracement after reaching as high as $53,000 on February 20. Despite this dip, Bitcoin whales are using this as an opportunity to accumulate more of the flagship cryptocurrency. According to Ki Young Ju, the founder and CEO of Crypto Quant, inflows into accumulation addresses have hit an all-time high of 25,300 BTC. These accumulation addresses are characterized by having no outgoing transactions, holding a balance exceeding 10 BTC, and not belonging to centralized exchanges or miners. The addresses must also have received more than two incoming transactions, with the most recent occurring within the last 7 years. Essentially, these addresses represent the most bullish investors in Bitcoin.
This surge in inflows into accumulation addresses coincides with Michael Saylor’s declaration that he has no intentions of selling any of MicroStrategy’s Bitcoin holdings. Saylor views Bitcoin as the ultimate exit strategy, highlighting the long-term potential he sees in the cryptocurrency. With the company reported to hold 190,000 BTC, Saylor’s commitment to holding onto Bitcoin further reinforces the bullish sentiment in the market.
The recently listed Spot Bitcoin ETFs, also known as ‘The Nine’, have recorded significant trading volume since their launch. These funds, including VanEck, WisdomTree, and Bitwise, have seen about $2 billion in combined trading volume. VanEck’s Bitcoin ETF, in particular, experienced a more than 14x increase in its daily average trading volume. The success of these ETFs demonstrates the growing interest and adoption of Bitcoin among retail investors, as evidenced by the surge in trading activity.
At the time of writing, Bitcoin is currently trading at around $51,500, showing a slight decrease in the last 24 hours. Despite the minor retracement, the overall trend of accumulation among Bitcoin whales and the increased trading volume of Bitcoin ETFs point towards a positive outlook for the cryptocurrency. The current market conditions indicate a growing confidence in Bitcoin’s long-term potential and the increasing interest from both institutional and retail investors.
The current landscape of Bitcoin accumulation by whales, the endorsement from prominent figures like Michael Saylor, and the success of Bitcoin ETFs all contribute to the overall bullish sentiment surrounding Bitcoin. The continuous accumulation of Bitcoin by whales, along with the growing adoption of Bitcoin ETFs, signal a positive trajectory for the cryptocurrency market. As investors continue to recognize the value and potential of Bitcoin as a long-term investment, the market is poised for further growth and development in the coming months.
Featured image from CNBC, chart from Tradingview.com
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