Bitcoin accumulator addresses have doubled in recent months. According to data from blockchain analytics company CryptoQuant, a dramatic shift has occurred in holding patterns among large BTC investors.
The number of addresses under Bitcoin accumulators has increased significantly to 262,000. This represents a 101% growth from the 130,000 addresses that were registered only a few weeks prior. CryptoQuant analyst Darkfost monitored this movement for two months.
Source: CryptoQuant
Record Accumulation Activity Signals Strong Conviction
The surge in accumulator addresses comes alongside unprecedented buying activity. These addresses bought more than 375,000 BTC within the last 30 days. The metric has reached an all-time high according to CryptoQuant's tracking systems.
The 5th of November saw particularly intense activity. Large Bitcoin accounts deposited over 50,000 BTC within a day. This buying pressure emerged in an environment where the markets were overall weak and retail demand was low.
Accumulator addresses have certain features that differentiate them from other types of wallets. Such addresses should have had at least one transaction in the last seven years. The classification does not include known exchange wallets and mining addresses. Smart contract addresses are not included in this category either.
The behavior of holding is a characteristic of these wallets. Accumulator buyers always buy Bitcoin and do not sell it. Such a trend aligns with long-term holding strategies and non-trading approaches.
Bitcoin recently experienced price volatility around the $102,000 to $104,000 range. Large addresses continued their buying campaigns throughout these fluctuations. At the time of writing, Bitcoin is trading at approximately $103,407.15, representing a 0.35% increase over the last 24 hours.
BTC Price, Source: CoinMarketCap
ETF Impact and Market Dynamics Create Mixed Signals
Part of this trend could be being fuelled by exchange-traded funds. Darkfost proposed that the growth of ETFs may be increasing accumulation trends amongst institutional investors. However, recent ETF flows paint a more complex picture.
The net outflows of Bitcoin ETFs are reported to have been recorded at $186.5 million on November 4. This withdrawal coincided with Bitcoin's decline to around $104,000. The data on outflow contradicts the high on-chain accumulation indicators of large addresses.
Since October 10, short-term holders have dominated the sell-side. This group has been the primary source of supply for hitting exchanges, as indicated by CryptoQuant data.
