Key Points
- Bitcoin’s accumulation has reached a new milestone with over 27,000 BTC inflows into accumulation addresses.
- Despite a recent price drop, market participants continue to accumulate Bitcoin ahead of the upcoming halving event.
Despite increased market volatility, Bitcoin (BTC) accumulation has reached a new milestone, with the next halving event just hours away.
According to a report by CryptoQuant analyst IT Tech, inflows into Bitcoin accumulation addresses exceeded 27,000 BTC on April 16. Accumulation addresses are defined as those with no outgoing transactions, a balance exceeding 10 BTC, no association with centralized exchanges or miners, and have received more than two incoming transactions.
Recent Accumulation Trends
The last all-time high inflows to these addresses were recorded on March 22, when they received 25,100 BTC. Despite recent market declines, with Bitcoin’s price dropping by 13% in the past week, market participants continue to accumulate Bitcoin. This trend is in anticipation of a post-halving price rally.
Historically, Bitcoin’s price has surged following past halving events. For instance, a year after the 2012 halving, Bitcoin’s price climbed by over 8,000%. Similarly, a year after the 2016 event, the coin’s value rose by 295%, and by 559% 365 days after the 2020 event.
Decrease in Selling Pressure
The current decline in selling pressure is evident in the steady decrease in Bitcoin’s exchange reserve. In the last week, the amount of Bitcoin held on crypto exchanges has fallen by 1%. As of writing, 1.94 million Bitcoins worth around $119 billion are held on exchanges.
As the halving event approaches, market volatility is on the rise. Indicators such as the widening gap between the upper and lower bands of Bitcoin’s Bollinger Bands suggest an increase in volatility, indicating the asset’s price is moving more aggressively and can break out in either direction.
