- 3.3B worth of BTC entered accumulation addresses, taking the total to 2.91M BTC.
- The actual price to holders is near $64K, indicating a continuation of high conviction demand.
- When Bitcoin price pushed up towards $105K, the exchange reserves dropped down to below 2.5M BTC, signalling a supply crunch.
According to the recent on-chain metrics provided by CryptoQuant, Bitcoin accumulation addresses have been supplied with an extra $3.3 billion in BTC. Such wallets are usually related to long-term holders not involved in outgoing transactions, which indicates a hold, rather than a trade-based strategy. This has increased the amount of Bitcoin stored in these wallets to 2.91 million BTC.
These accumulation addresses now have an average entry price of around $64,000. This measure indicates that entities that purchase at spot or near-term prices have confidence in Bitcoin’s long-term value. This is despite turbulent market conditions, and the steady inflows indicate that holders are maintaining their positions andproviding a solid backbone to the current market cycle.
Realized Price Trends Suggest Strong Conviction
The chart provided by CryptoQuant indicates that the realized price of the accumulation wallets or the average buy price has been increasing steadily. This price level is indicated by the orange line on the visual and is currently hovering around 64000 USD. This tendency suggests that even at comparatively high market rates, the recent buy orders were placed, which speaks in favour of preserving the confidence of accumulation-oriented investors.
Further, a Spearman correlation of the balance change in BTC and the market cycle indicates that these wallets tend to buy during the pullbacks or consolidations. This is as opposed to the euphoria of retail, whose purchase is more prevalent during the sharply rise. The new wave of accumulation is associated with a moderate term on the market, and this fact indicates the strategic placement of knowledgeable subjects.
Reserved Exchange decreasing as Prices move upwards.
The other chart offered by CryptoQuant also indicates the inverted correlation between the reserve on exchanges and Bitcoin price. The exchange-traded BTC has fallen much, by over 3.3 million to below 2.5 million BTC since the beginning of 2024. Such a negative momentum suggests a decline in the sell-side pressure and the growing popularity of self-custody amongst investors.
In the meantime, the cost of Bitcoin has continued to increase, surpassing $105,000. The fact that the fall in the exchange reserves was accompanied by rising prices suggests a limited supply. The image might result in additional price support in the short term and is a component of a broader theme of reduced liquidity on centralized exchanges.
“Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their research before making financial decisions.”
