CryptoQuant analyst Burak Kesmeci recently report revealed a significant, noticeable raise in Bitcoin accumulation addresses, which now exceeds 2.9 million BTC.
These addresses have steadily increased their holdings without selling despite market uncertainty, doubling their Bitcoin reserves in just 10 months.
This trend underscores the broader market sentiment, where long-term investors, both individual and institutional, are showing confidence in Bitcoin’s future.
Bitcoin accumulation growth in 2024
In a post submitted to the CryptoQuant QuickTake platform, Kesmeci’s analysis provides an in-depth understanding of what defines these accumulation addresses and why they have been so energetic throughout 2024.
Unlike typical investor behavior, the analyst mentioned that Bitcoin never flowed from these addresses, meaning it only accumulated. The analyst calls them the epitome of long-term investment strategies, suggesting that they are fully committed to the “HODL” mentality. Kesmeci wrote:
These are not exchange addresses; they are wholly owned by individual or institutional investors. They have made at least two signings and been energetic at least once in the last seven years. Basically, these addresses are the living embodiment of the word “hodl”.
As of January 2024, there were 1.5 million BTC in these accumulation addresses. However, in just 10 months, this number almost doubled, reaching 2.9 million BTC.
Kesmeci points out that this accumulation phenomenon is nothing up-to-date, but what makes 2024 special is the speed and magnitude of the growth of these addresses.
According to the report, this continued accumulation in such immense quantities means that short-term market volatility has no impact on these holders. Kesmeci also emphasizes that in 2018, there were only 100,000 BTC in accumulator addresses.
By the 2021 bull market, this number had increased to 700,000, with a notable acceleration in 2024. This rapid accumulation suggests that these addresses are deeply confident in Bitcoin’s long-term value and potential. Kesmeci asks: “What do address owners know that the rest of the market may not know?”
What does this mean for the market?
The analyst concluded with a bold prediction: by the end of 2024, there could be over 3 million BTC in these addresses, potentially worth over $210 billion at Bitcoin’s price of $70,000.
Specifically, according to analyst CryptoQuant, this would mean that the total value stored at these addresses would be higher than that of major corporations such as “General Electric, the 61st largest company by market capitalization,” highlighting the growing influence and power of long-term Bitcoin holders.
Kesmeci emphasizes that this kind of accumulation could significantly influence Bitcoin price stability and future growth. If the trend continues, the market could see reduced selling pressure as these immense bondholders remain attached to their positions, likely leading to sustained price increases in the longer term.
Featured image created with DALL-E, chart from TradingView
