Key Points
- The balance on BTC accumulation addresses surged by 93% in 2024, now holding $194 billion.
- The increase in BTC holdings could signal a potential price rally for Bitcoin.
The HODLing strategy appears to be the preferred investment approach for Bitcoin (BTC) based on the behavior of investors in 2024.
Data from CryptoQuant’s analyst Burak Kesmeci reveals that BTC accumulation addresses now contain 2.9 million coins, which is valued over $194 billion. This marks a nearly 2x (93%) increase from the holdings in January.
Massive Accumulation
In 2018, BTC accumulation addresses only held 100K coins. By the 2021 bull run, this number had risen to 700K coins. However, the real growth was witnessed in 2024, with a significant 93% increase from 1.5 million in January to 2.9 million.
This massive accumulation could be a bullish sign, possibly indicating that holders anticipate further BTC price appreciation. It’s important to note that the U.S. spot BTC ETFs were launched in January 2024, which could have sparked the surge in BTC accumulation addresses.
U.S. Spot BTC ETFs and Investor Demand
As of October 18th, these products held 961K BTC, valued over $65 billion. The approval of the U.S. spot BTC ETF led to a rise in U.S. investor demand for the asset in Q1 2024, as evidenced by the spikes in the Coinbase Premium Index.
This renewed optimism saw BTC reach a new all-time high (ATH) above $73K in March. However, as of the time of writing, investor interest in Q4 was lower than the demand seen in Q1. Despite this, BTC was valued at $66.3K, only about 11% from the March’s ATH.