Despite the general negative market, Bitcoin retains certain optimistic on-chain measures. The number of Bitcoin accumulation addresses has climbed by more than 10% in the previous several days, reaching an all-time high of over 550,000 addresses. National governments and organisations may have aided in the growth of Bitcoin accumulators.
Bitcoin accumulation addresses have been increasing in use, according to data from crypto market analytics company Glassnode. Since December, approximately 20,000 new Bitcoin addresses have been added to the category of Bitcoin accumulation addresses, representing a roughly 3.2 percent increase over the previous two months.
The Bitcoin accumulation addresses measure only considers Bitcoin addresses that have received at least two non-dust transactions but have never spent any cash. To be as precise as possible, Glassnode states that the metric excludes exchange addresses and lost coins – addresses that were last active more than seven years ago. The growth in this statistic is very optimistic for Bitcoin and indicates the possibility of a supply crunch, which would drive prices higher.
The fast diminishing Bitcoin crypto exchange reserve bolsters this unambiguous accumulation indicator. This indicator, which indicates the total number of Bitcoins available for sale on exchanges, is now at 2.37 million, close to the all-time low of 2.30 million Bitcoins set earlier this month, according to data from crypto analytics company CryptoQuant.
El Salvador, a nation-state, has been one among the accumulaters. El Salvador’s president, Nayib Bukele, recently stated that the nation has purchased the dip, adding an additional 410 Bitcoins to its holdings. During the decline, BlackRock, one of the world’s top financial management firms, announced intentions to develop a blockchain-focused exchange-traded fund.
There is a glimmer of hope at the end of the dark bearish tunnel.
The growing accumulation suggests that investors are aggressively buying the downturn. This is one reason why numerous market experts seem unconcerned by the market’s big liquidations and the precipitous decline in the crypto market capitalization.
According to crypto expert @Crypto mystery, the current environment is far from negative, as shown by statistics and sustained institutional adoption.
“Thus, if we look at the statistics, things are far from negative, and I continue to think that the comeback will be spectacular,” he remarked.
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