Bitcoin's Year-Long Accumulation Phase Ends, Six-Figure Valuation Possible by 2024
Summary:
Bitcoin (BTC) is concluding a year-long phase of stockpiling, marking a drop in accumulation addresses for the first time since Q1 2023, according to on-chain analytics firm Glassnode. Despite a recent surge and sell-offs, long-term Bitcoin holders have been making profits, with balances in accumulator wallets decreasing. The broader trend of accumulation since mid-2018 is still in place. The launch of US spot-Bitcoin ETFs in January has impacted supply dynamics, with speculations that Bitcoin could hit $100,000 by 2024 given the current trajectory.
Bitcoin (BTC) is winding down a 12-month period of stockpiling that initiated following the 2022 bear market, according to data analysis. Statistics from on-chain intelligence platform Glassnode depict a decrease in BTC in accumulation wallets for the first time since the initial quarter of 2023.
Recent record high valuations of Bitcoin may have triggered a sudden wave of sales, but long-term holders have been tactically profiting in the background. Glassnode indicates that the quantity of coins in so-called “accumulation addresses”, those with no outgoing transactions and at least two inbound ones, is experiencing a dip.
This reversal, starting on February 11, breaks from the usual pattern observed over the past year and coincides with the bounce-back of BTC/USD to $48,000, the peak of a significant historical trading channel. Accumulator balances have since declined 2.6% to 3,176,293 BTC ($212 billion), with no apparent reversal on the horizon.
When viewed from a larger scale, this occurrence is far from alarming. Despite dwindling acquisition, historical data reveals that these accumulation wallets have repeatedly gone through extended phases of gathering coins at lower prices, only beginning to liquidate when a rapid upward trend is already underway.
When analyzing Bitcoin’s historical balances, a broader accumulation pattern set against the backdrop of mid-2018 remains clearly visible, presenting a stark contrast to a massive drawdown that begun in 2016, simultaneous to Bitcoin's stride towards its former $20,000 record high.
Will Bitcoin touch a $100,000 valuation this year? Cointelegraph has previously disclosed that the inauguration of the US spot-Bitcoin exchange-traded funds (ETFs) in January has singularly affected supply metrics.
Persistent purchasing power has led to hitherto unprecedented events, such as reaching a new record high before a block subsidy halving. Timothy Peterson, founder and investment head at Cane Island Alternative Advisors, has speculated that ETF-led demand could push Bitcoin into the six-figure bracket by 2024.
According to Peterson, the approval of the Bitcoin Spot ETF has sparked a level of accumulation that could send BTC to $100K by October 2024, if maintained, as he shared with his followers on March 7. An accompanying chart drew a relation between unspent transaction output (UTXO) numbers and BTC price action, highlighting a daily growth of 0.34%.
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Published At
3/7/2024 12:15:00 PM
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