Bitcoin Accumulation Hits 2.9 Million BTC: Has the Preparation For A Massive Rally Begun?

CryptoQuant analyst Burak Kesmeci’s recent report revealed a significant notable rise in Bitcoin accumulation addresses, which now surpasses 2.9 million BTC.

These addresses have steadily increased their holdings without selling despite the market’s uncertainty, doubling their Bitcoin reserves in just 10 months.

This trend highlights a broader market sentiment, where long-term investors, both individual and institutional, are displaying confidence in Bitcoin’s future.

The Rise Of Bitcoin Accumulation In 2024

In the post uploaded on the CryptoQuant QuickTake platform, Kesmeci’s analysis dives deep into understanding what defines these accumulation addresses and why they have been so active throughout 2024.

Unlike typical investor behavior, the analyst mentioned that these addresses have never had a Bitcoin outflow, meaning they’ve only been accumulating. The analyst calls them the epitome of long-term investment strategies, suggesting they are fully committed to the “HODL” mentality. Kesmeci wrote:

They are not exchange addresses; they belong entirely to individual or institutional investors. They’ve made at least two transfers and have been active at least once in the last seven years. Essentially, these addresses are the living embodiment of the word “hodl.”

As of January 2024, these accumulation addresses held 1.5 million BTC. However, in just 10 months, that figure nearly doubled, reaching 2.9 million BTC.

Kesmeci points out that this accumulation behavior isn’t new, but what makes 2024 unique is the speed and volume at which these addresses are growing.

According to the report, this consistent accumulation in such high quantities implies that short-term market volatility does not influence these holders. Kesmeci also highlights that back in 2018, accumulation addresses only held 100,000 BTC.

By the 2021 bull run, that number had grown to 700,000, and in 2024, the acceleration has been noteworthy. This rapid accumulation suggests these addresses are deeply confident in Bitcoin’s long-term value and potential. Kesmeci asks, “What do these address owners know that the rest of the market might not?”

What Does This Mean for The Market?

The analyst concluded with a bold prediction: by the end of 2024, these addresses could hold more than 3 million BTC, potentially valuing over $210 billion at a Bitcoin price of $70,000.

Notably, according to the CryptoQuant analyst, this would place the total value held in these addresses above major corporations like “General Electric the 61st largest company by market cap,” highlighting long-term Bitcoin holders’ growing influence and strength.

Kesmeci emphasizes that this kind of accumulation could significantly impact Bitcoin’s price stability and future growth. If the trend continues, the market may see reduced selling pressure as these large holders remain committed to their positions, possibly driving a sustained price rally in the long term.

Featured image created with DALL-E, Chart from TradingView