Staunch Bitcoin Investors Sent A Record $1.7 Billion In BTC To “Accumulation” Addresses As The Crypto Plunged

Updated: 19 April 2024

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Committed Bitcoin investors added a record $1.7 billion worth of BTC to ‘accumulation’ wallet addresses in a single 24-hour period earlier this week as BTC dropped below $63k, indicating strong confidence in the crypto bouncing back beyond that level.

Wallet addresses that have no history of withdrawals, hold more than 10 BTC, and do not belong to exchanges or miners added an eye-watering 27,700 coins to their reserves between Apr. 16 and 17, according to CryptoQuant data.

This mass accumulation was a new daily record, trumping the 25,500 BTC coins that were scooped up by these addresses on Mar. 23, when the market leader’s price was hovering around $63,500.

Bitcoin Could Enter A Re-Accumulation Phase After The Halving

Several analysts have predicted that the weeks prior to the halving will be the last chance for investors to acquire BTC before an anticipated post-halving rally.

Pseudonymous trader Rekt Capital is one such analyst, and told his 453k followers on X that BTC is displaying a similar pattern to past halving cycles. BTC’s 14% drop from its all-time high of $73,600 on Mar. 13 was also expected and formed part of a “pre-halving retrace,” he said in an Apr. 17 X post.

#BTC

3 Phases of The Bitcoin Halving

1. Final Pre-Halving Retrace

Bitcoin has produced two -18% retraces prior to the Halving in the span of just over a month

In mid-March, BTC pulled back -18% before recovering to $70000 and now in mid-April BTC has retraced -18% again

This… pic.twitter.com/2BKBQXpPOV

— Rekt Capital (@rektcapital) April 17, 2024

After the halving, which is slated to take place on Apr. 20, the trader believes Bitcoin will enter a re-accumulation phase.

“Historically, this phase has lasted just over a year (~385 days) however with a potential Accelerated Cycle occurring right now, this figure may get cut in half in this market cycle,” he said.

Don’t Use Past Halvings To Determine What BTC Will Do This Cycle, Goldman Sachs Warns

Goldman Sachs looks at things differently. It’s warned investors against using past Bitcoin halving cycles to predict BTC’s performance after the upcoming event. The investment banking giant said that this halving event could be different due to the prevailing macro conditions.

During previous halving cycles, demand for risk assets was high as interest rates remained at or below zero in most developed economies. But now US interest rates are at above 5%, with analysts growing more skeptical that rate cuts will happen this year.

🚨 Bitcoin's 4th halving is imminent! 🔍 @GoldmanSachs warns not to rely on past trends for future predictions. The macroeconomic landscape has changed, and so might Bitcoin's price trajectory post-halving. 🚀 Stay informed! #BitcoinHalving2024 #CryptoNews pic.twitter.com/NiMTYS843j

— John Bravo (@JohnBTCBravo) April 17, 2024

Both the stock and crypto markets might be approaching a “crucial tipping point” and heading for a steep correction, the founder of 10X Research Markus Thielen warned in an Apr. 16 research note.

He cited ongoing inflation, the possibility of fewer rate cuts than expected this year, and rising bond yields as reasons underlying his bearish outlook.