Bitcoin enthusiasts have been busy during the recent market dip, with a whopping $1.7 billion worth of the cryptocurrency flowing into ‘accumulation’ wallets as prices briefly slipped below $63,000.
On April 16, a staggering 27,700 Bitcoin found its way into these specialized wallets, setting a new daily record according to data from CryptoQuant. These ‘accumulation addresses’ are distinguished by their history of no withdrawals and holding balances of over 10 BTC, excluding those associated with miners and exchanges. Additionally, these addresses must have shown activity within the last seven years.
The surge in accumulation suggests a strong sentiment among large investors who remain steadfast in their belief in Bitcoin’s long-term potential. Analysts, such as the pseudonymous trader Rekt Capital, have pointed out parallels between current market movements and previous halving cycles, indicating that this could be a prime opportunity for investors to seize Bitcoin at discounted prices before a potential post-halving rally.
Rekt Capital predicts that Bitcoin might undergo a “re-accumulation phase” following the upcoming halving event, expected around April 20. Traditionally, such phases have lasted over a year, but with the possibility of an accelerated cycle in the current market, this timeline could be significantly shortened.
