Bitcoin accumulation addresses are experiencing a surge in holdings, with a total of 2.9 million BTC, valued at approximately $194 billion, now being held in these addresses. This marks a significant increase from 1.5 million BTC at the beginning of the year. These addresses, which have never had a Bitcoin outflow, are focused on long-term investing and continue to accumulate without selling their holdings. They are not exchange cold storage addresses but belong to individual or institutional investors who have been active in the market for at least seven years.
The growth of these addresses has steadily increased over the years, with 100,000 BTC in 2018 and 700,000 BTC during the 2021 bull rally. The analyst predicts that these addresses could reach 3 million BTC by the end of the year. If Bitcoin’s price were to rise to $70,000 by year-end, their holdings would surpass the market capitalizations of major corporations like General Electric.
It is worth noting that the approval of spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission has contributed to significant inflows, with over $20 billion being invested this year. BlackRock’s iShares Bitcoin Trust leads in terms of inflows, while the Hashdex Bitcoin ETF and Grayscale’s GBTC have seen some outflows. This data highlights the growing interest in Bitcoin among long-term investors and their commitment to accumulating the cryptocurrency.