According to on-chain data, Bitcoin “permanent holder addresses” have amassed nearly $23 billion worth of the cryptocurrency over the past month. In a post on X dated August 7, Ki Young Ju, the founder and CEO of CryptoQuant, remarked, “I’m pretty sure something is happening behind the scenes.” This statement referred to a notable increase in the 30-day demand for permanent Bitcoin (BTC) holders.
In the last 30 days, approximately $22.8 billion, equivalent to 404,448 BTC, has transitioned to permanent holder addresses. “This is clearly a sign of accumulation,” Ki noted.
Bitcoin permanent holder addresses 30-day demand change. Source: CryptoQuant
He anticipates that within the next year, various entities—including traditional financial institutions, corporations, and governments—will disclose their Bitcoin acquisitions in the third quarter of 2024. He further elaborated on his observations in another post on X, highlighting additional optimistic indicators such as Bitcoin miner activity. “The miner capitulation phase is nearly over,” he stated, mentioning that the hash rate is approaching all-time highs. He also pointed out that U.S. mining costs hover around $43,000 per coin, suggesting that the hash rate is likely to remain stable unless prices fall below this threshold.
“Retail investors are largely absent, akin to the situation in mid-2020,” he described, noting a reduction in the activity of older whales. While long-term holders who have held for over three years sold their Bitcoin between March and June, he indicated that “there is currently no significant selling pressure from these old whales.”
In late July, he recorded the flow of Bitcoin to permanent holder addresses, including exchange-traded funds, asserting that not all remaining BTC is held in custody wallets. “Whales are clearly accumulating, and this is an unprecedented level of activity,” he emphasized.
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Following the market downturn on August 5, which saw BTC prices plummet to $49,800, accumulation seems to have surged. As reported by Cointelegraph, the asset has rebounded by 14%, reclaiming the $57,000 mark on August 6. Additionally, the Bitcoin ‘Fear and Greed’ index has shifted from ‘extreme fear’ to a level of 29, indicating a slight improvement in market sentiment, although it still reflects fear.
Source: Bitcoin Fear and Greed Index
At the time of writing, BTC was trading at $56,836, showing a 1.7% increase for the day.
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