Bitcoin's price action over the past week has been a source of concern for the majority of the crypto community. This has pretty much been the case for other cryptocurrencies in the market, with several large-cap tokens reversing their recently accumulated profits.
However, some investors view the recent price drop as a rare opportunity in a bull market as they continue to fill their bags with the assets of their choice. Specifically, the latest on-chain data shows significant buying activity among a certain class of investors.
25,000 BTC flows to accumulation addresses in one day
Ali Martinez, a prominent cryptography expert, revealed, via a post onthat over 25,000 BTC (valued at approximately $1.6 billion) were transferred to accumulation addresses on Friday, March 22. This figure represents the highest amount transferred to these wallets in a single day so far in 2023.
The interesting metric here is the inflow to accumulation addresses on the Bitcoin blockchain. For context, a Bitcoin accumulation address refers to an address that has no outgoing transactions and maintains a balance of at least 10 BTC.
A chart showing the inflows to Bitcoin accumulation addresses | Source: Ali_charts/X
This classification, however, excludes digital wallets linked to centralized exchanges and miners and has less than 2 non-dusty inbound transfers. Additionally, this does not include addresses that have not seen any activity for more than seven years.
The increased flow of coins to this class of wallet addresses is evidence of substantial BTC accumulation by entities that view crypto as a long-term investment. This indicates that some major players are accumulating Bitcoin in anticipation of potential appreciation in value.
Additionally, this significant acquisition by long-term investors highlights the growing adoption of Bitcoin as a store of value. Meanwhile, this could be an indicator of a short-term upward price movement.
Bitcoin Price Overview
At the time of writing, Bitcoin is valued at $64,636, reflecting a price increase of just 1% over the past 24 hours. This price change is somewhat negligible, considering the major cryptocurrency's deep retracement earlier in the week.
According to data from CoinGecko, the price of BTC has fallen by 2.4% over the past week. Meanwhile, the market leader is currently about 13% away from its all-time high of $73,798.
However, Bitcoin price saw an overall positive performance in March, having surpassed this previous all-time high of $69,000 just over a week ago. And, with a market capitalization of $1.26 trillion, BTC maintains its position as the largest cryptocurrency in the industry.
The price of Bitcoin struggles to hold above $64,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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