Retail Accumulation Of Bitcoin Continues Unabated

CryptoMode Bitcoiner Self-Care Accumulation

The recent crypto market surge has people looking at Bitcoin differently than a few months ago. However, while the price change is the talk of the town, it only tells part of the story. Accumulation of BTC is still going strongly, confirming interest in Bitcoin has not waned whatsoever. 

Bitcoin Accumulation Continues

Many factors can influence the price of BTC or other cryptocurrencies today. When there is more demand than supply, prices are likely to go up sooner or later. For Bitcoin, the recent price surge seems to be a combination of higher demand following ongoing accumulation by retail users. That accumulation aspect is crucial for all cryptocurrencies, as lower prices tend to spark excitement.

Cryptocurrencies tend to put up a solid performance in a 365-day window. Moreover, most people acknowledge there is a good chance BTC will break $50,000 again this year, even if a new all-time high might be a bit of a stretch. Having the option to buy BTC at $40,000 or lower was rather appealing for many retail users, per statistics by Into The Block. The chart confirms people have been stacking sats during this less-exciting period, potentially engaging in dollar-cost-averaging.

What is interesting is the strong demand by addresses holding over 0.1 BTC. Those people have continued to accumulate Bitcoin and slowly make their way up to owning a full Bitcoin. Keep in mind that there will only be 21 million BTC, and owning 1 BTC will create a substantial edge over those not invested in cryptocurrency. Accumulating during periods of bearish market pressure is a smart idea, assuming one has the financial means to afford it. 

Interestingly, the chart also shows good money has been spent on Bitcoin accumulation. Average holdings increased by 5.5%, which is significant. So a lot of money has been pouring into cryptocurrencies these past few months, even if the price trends did not reflect it right away. As the value per BTC goes up, it seems plausible to assume the accumulation will continue for some time to come.

Exchange Outflow Isn’t Budging

Unfortunately, it appears there are still many users keeping their BTC on exchanges. However, that is somewhat normal as exchanges make acquiring BTC easier and using it to diversify one’s portfolio. Even so, there has been a strong inflow of Bitcoin onto exchanges in the past month. The ongoing accumulation seemingly makes little or no difference on that front, which is rather surprising.

The biggest inflow comes from Binance, which noted a balance change of over 15,000 BTC in a month. A remarkable trend considering none of the other exchanges saw an outflow of over 2,784 BTC. That could indicate these funds have come from external sources, including non-custodial wallets, miners, etc. It will be exciting to see how this affects Bitcoin’s future price momentum.  

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