Demand coming from what CryptoQuant refers to as accumulator addresses continues to rise sharply.
For CryptoQuant, these addresses represent a specific class of long term holders, and their current behavior is particularly notable.
Monthly accumulation is now averaging around 372,000 BTC, which is a massive figure.
The recent decline in Bitcoin appears to be creating opportunities for these investors or entities, who continue to accumulate aggressively.
For comparison, in September 2024, the average monthly accumulation of these addresses was only about 10,000 BTC.
When I see charts moving this dramatically, I usually try to challenge and rationalize the data.
In this case, however, there are few reasons to question its validity.
The selection of these addresses is based on a precise and complementary set of criteria :
– No outflows
– A minimum amount of BTC purchased in the latest transaction
– At least two purchasing events or inflows
– The address must hold a minimum total BTC balance
– The address must have been active at least once in the past seven years
– Known exchange and miner addresses are excluded
– No smart contract activity
This framework is designed to minimize potential data distortion as much as possible.
That is precisely why this wave of BTC accumulation is so compelling to watch.
While some investors are reacting emotionally to short term price action, others appear to be positioning for the long term, which has historically been one of the most effective approaches to investing in Bitcoin.
Written by Darkfost
