Bitcoin Miner Activity and Whale Accumulation Suggest Market Bullishness, Says CryptoQuant
Bitcoin Miner Activity– Bitcoin’s permanent holder addresses have accumulated nearly $23 billion worth of the asset over the past month, based on onchain data.
In a post on X on August 7, Ki Young Ju, founder and CEO of CryptoQuant, noted, I’m pretty sure something is happening behind the scenes, referring to a significant spike in 30-day demand for Bitcoin by permanent holders.
According to Ju, approximately $22.8 billion, or 404,448 BTC, has been transferred to these addresses in the last 30 days, indicating clear accumulation. He anticipates that within a year, major entities like traditional financial institutions, companies, or governments might announce Bitcoin acquisitions in Q3 2024. Ju warned that retail investors might regret missing out if they were concerned about factors like the German government selling Bitcoin or issues like Mt. Gox.
In another post on August 7, Ju highlighted additional bullish factors, such as Bitcoin miner activity. He stated that miner capitulation is nearly over, with the hashrate approaching all-time highs and mining costs in the U.S. around $43,000 per coin. This suggests the hashrate should remain stable unless prices drop below this threshold.
Ju also pointed out that retail investors are largely absent from the market, similar to mid-2020. He mentioned that while long-term holders have sold off some Bitcoin between March and June, there has been no significant selling pressure from old whales recently. Notably, flows into permanent holder addresses like ETFs have increased since the market dip on August 5, which saw BTC prices fall to $49,800.
Since then, Bitcoin has rebounded 14%, reaching $57,000 by August 6. Additionally, the Crypto Fear & Greed Index has shifted from extreme fear to fear, reflecting a slight improvement in market sentiment.
For the latest in crypto updates, keep tabs on Crypto Data Space.
Leave a comment