21 February 2024
Bitcoin is currently experiencing a retracement after rising to as high as $53,000 on February 20. This recent dip has, however, not deterred Bitcoin whales, with these investors rather seeing it as an opportunity to accumulate more of the flagship crypto token.
Inflows To Accumulation Addresses Hit All-Time High
Ki Young Ju, the founder and CEO of the on-chain analytics platform Crypto Quant, revealed in an X (formerly Twitter) post that inflows into accumulation addresses have reached an all-time high (ATH) of 25,300 BTC. Young then highlighted the significance of this occurrence as he elaborated on what accumulation addresses are.
These accumulation addresses are said to have no outgoing transactions and have a balance that exceeds 10 BTC. Accounts belonging to centralized exchanges (CEXs) or miners are also excluded from this category of wallet addresses. Meanwhile, these addresses have received more than two incoming transactions, with the most recent occurring within the last 7 years.
Simply put, these addresses are the most bullish on Bitcoin and can be regarded as the ultimate ‘Bitcoin Diamond Hands.’ This development further highlights the growing accumulation trend as more investors continue to stack up their BTC holdings ahead of the next bull run, which is projected to begin after the Halving event.
Interestingly, inflows into accumulation addresses hitting an ATH coincides with Michael Saylor’s statement that he doesn’t plan on selling any of his company’s Bitcoin anytime soon. According to the tech executive, “Bitcoin is the exit strategy.” Saylor’s MicroStrategy is reported to hold 190,000 BTC BTC at the moment.
Spot Bitcoin ETFs Also See Record-Breaking Day
Bloomberg analyst Eric Balchunas noted in an X post that the newly listed Spot Bitcoin ETFs (referred to as ‘The Nine’) recorded their biggest volume day since Day one of launch. These funds are said to have seen about $2 billion in combined trading volume.
Balchunas further mentioned that this achievement was largely thanks to “big contributions” from VanEck ($HODL), WisdomTree ($BTCW), and Bitwise’s ($BITB) Bitcoin ETFs, which all broke their personal records. VanEck’s Bitcoin ETF, in particular, saw more than a 14x increase in its daily average.
Highlighting how explosive this was, Balchunas revealed that VanEck Bitcoin Trust ETF recorded 50,000 trades on February 20. Meanwhile, this same fund had only seen just 500 trades on February 16. Interestingly, the Bloomberg analyst noted that these trades were more likely from retail investors rather than a single “big investor.”
At the time of writing, Bitcoin is trading at around $51,500, down in the last 24 hours, according to data from CoinMarketCap.