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Friday, April 19, 2024

BTC Price Soars Above $42K as Bitcoin Accumulation Wallets Now Worth $68B with 1.7M BTC

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Bitcoin is back above $42,000 after dropping below the $ 39,000 threshold earlier this week.

The subsequent increased selling pressure on Bitcoin was alarming, but the overall sentiment appears to be bullish nonetheless. This was evidenced by Bitcoin accumulation wallets, which are now holding an impressive 1.7 million BTC, valued at $68 billion, according to CryptoQuant’s CEO Ki Young Ju.

  • Such a trend signals a strong vote of confidence and a growing trust in the leading crypto asset among investors. The trend toward holding Bitcoin as a store of value or long-term investment is evident, supported by the substantial holdings in accumulation wallets.
  • In addition to showcasing investors’ belief, the accumulation pattern in Bitcoin’s potential also hints at a reduction in market supply, potentially driving up prices.
  • Notably, Bitcoin inflows to accumulation wallets have reached a 5-year peak, including transactions to custodial services like Coinbase Custody, marking another significant milestone in the crypto’s journey.
  • The recent downward pressure can be attributed to a heightened selling activity by prominent holders of Bitcoin, such as sharks and whales, in a bid to leverage their profits by offloading their holdings in the trading markets.
  • However, the steady accumulation by certain other entities is expected to push the value of Bitcoin higher as it anticipates the fourth halving event in April this year.
  • Meanwhile, the number of active Bitcoin addresses also surpassed 1 million, thereby signaling growing participation and usage of the crypto asset.

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