Amid the broader bear market, Bitcoin still has some bullish on-chain metrics going for it. In the last few days, the number of Bitcoin accumulation addresses has increased by over 10% and is at an all-time high of over 550,000 addresses. Nation-states and institutions may have contributed to this rise in Bitcoin accumulators.
Bitcoin accumulation rate skyrockets even as El Salvador buys the dip
According to data from crypto market intelligence firm, Glassnode, Bitcoin accumulation addresses have been on the rise. Since December, over 20,000 new Bitcoin addresses have entered the Bitcoin accumulation addresses category, an about 3.2% rise in the last 2 months.
The Bitcoin accumulation addresses metric takes into consideration only Bitcoin addresses that have at least two incoming non-dust transfers and have never spent funds. According to Glassnode, to be as accurate as possible, the measure does not take into consideration exchange addresses and lost coins – addresses that were last active more than seven years ago. The increase in this metric is highly bullish for Bitcoin and points to a possible supply squeeze that will push prices up.
Supporting this clear accumulation metric is the rapidly declining crypto exchange reserve of Bitcoin. This metric, which measures the collective amount of Bitcoins available for sale on exchanges is at 2.37 million, close to its all-time low of 2.30 million Bitcoins reached earlier this month according to data from crypto analytics firm CryptoQuant.
One of the accumulators has been the nation-state of El Salvador. El Salvador’s president Nayib Bukele announced recently that the country has bought the dip, adding another 410 Bitcoins to its stash. Amidst the dip, BlackRock, one of the world’s largest investment management corporations, has also revealed plans to launch its blockchain-focused ETF.
There is light at the end of the bearish tunnel
The increasing accumulation indicates that investors are buying the dip massively. This is one reason several market pundits are seemingly not bothered by the massive liquidations that have been occurring in the market as well as the enormous drop in the crypto market capitalization.
According to the crypto analyst @Crypto_mystery, things are far from bearish at the moment as the data and continued institutional adoption indicate.
“So things are far from bearish if we look at the data and I still believe that the bounce will be epic,” he noted.
- Source: https://zycrypto.com