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Bitcoin returned above $42,000 after falling below $39,000 at the start of the week.
The increased selling pressure on Bitcoin that followed was alarming, but the overall sentiment appears optimistic nonetheless. This was demonstrated by Bitcoin accumulation wallets, which now hold a staggering 1.7 million BTC, valued at $68 billion, according to CryptoQuant CEO Ki Young Ju.
- Such a trend signals a strong vote of confidence and growing confidence in the leading crypto asset among investors. The trend toward holding Bitcoin as a store of value or long-term investment is evident, supported by large holdings in accumulation wallets.
- In addition to showing investor confidence, Bitcoin's potential accumulation trend also hints at a reduction in market supply, which could push prices higher.
#Bitcoin accumulation wallets now hold 1.7 million $BTCvalued at $68 billion. pic.twitter.com/t24v8nSVbl
– Ki Young Ju (@ki_young_ju) January 26, 2024
- Notably, Bitcoin flows to accumulation wallets have reached a 5-year spike, including transactions to custodial services like Coinbase Custody, marking another milestone in the crypto journey.
- The recent downward pressure can be attributed to increased selling activity by prominent Bitcoin holders, such as sharks and whales, in an attempt to leverage their profits by offloading their holdings on the commercial markets.
- However, the constant accumulation of some other entities is expected to push the value of Bitcoin higher as it anticipates the fourth halving event in April this year.
- Meanwhile, the number of active Bitcoin addresses also exceeds 1 million, thereby signaling growing participation and usage of the crypto asset.
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