According to the latest report by CryptoQuant analyst Burak Kesmeci, there has been a noteworthy surge in Bitcoin accumulation addresses, which now exceed 2.9 million BTC.
These addresses have consistently increased their Bitcoin holdings while refraining from selling, even amid market volatility, effectively doubling their reserves in a mere 10 months.
This behavior reflects a wider market sentiment where individual and institutional long-term investors are exhibiting strong confidence in Bitcoin’s future potential.
The Surge of Bitcoin Accumulation in 2024
In a post on the CryptoQuant QuickTake platform, Kesmeci’s analysis thoroughly explores the characteristics of these accumulation addresses and the reasons for their heightened activity throughout 2024.
In contrast to typical investor behaviors, Kesmeci notes that these addresses have never experienced a Bitcoin outflow, indicating a continuous accumulation strategy. He describes them as the quintessential long-term investment archetype, emphasizing their commitment to the “HODL” philosophy. Kesmeci remarked:
They are not exchange addresses; they are exclusively owned by individual or institutional investors. They’ve conducted at least two transactions and have shown activity at least once in the past seven years. Essentially, these addresses exemplify the essence of “hodl.”
By January 2024, these accumulation addresses contained 1.5 million BTC, but this number has nearly doubled to 2.9 million BTC within just 10 months.
Kesmeci points out that while this accumulation trend is not new, 2024 is distinguished by the rapid pace and scale of growth in these addresses.
The report indicates that such significant accumulation suggests that short-term market fluctuations do not deter these holders. Kesmeci also notes that back in 2018, accumulation addresses had only 100,000 BTC.
During the 2021 bull market, that number surged to 700,000, and in 2024, the rate of accumulation has been remarkable. This swift growth implies that these addresses possess a strong belief in Bitcoin’s long-term viability and potential. Kesmeci questions, “What insights do these address owners have that the broader market may not?”
Implications for the Market
The analyst made a bold forecast: by the close of 2024, these addresses could accumulate over 3 million BTC, potentially valuing upwards of $210 billion at a Bitcoin price of $70,000.
Importantly, Kesmeci highlighted that this would elevate the total value held within these addresses above well-known corporations like “General Electric, the 61st largest company by market cap,” emphasizing the increasing influence and stability of long-term Bitcoin holders.
Kesmeci underscores that such accumulation could significantly influence Bitcoin’s price stability and growth trajectory. If this trend persists, the market may experience diminished selling pressure as these major holders remain steadfast in their positions, potentially fostering a sustained price rally over time.
Featured image created with DALL-E, Chart from TradingView
