After bitcoin prices dipped to a low of $30,066 per unit last week, lots of people have been focused on the panic sellers. Meanwhile, when bitcoin prices plunged, the number of bitcoin addresses in accumulation tapped an all-time high at 545,115 addresses.
Number of Bitcoin Accumulation Addresses Hit New Highs
Bitcoin (BTC) prices slid from a $64,895 per unit high to a low of $30,066 per bitcoin in 30 days losing more than 53% in value. When the price plunge took place data from Glassnode’s bitcoin “accumulation addresses” spiked.
The number of bitcoin addresses in accumulation shows fundamental strength signals and gives investors a perspective of long-term holders. Glassnode’s data reflects addresses with little to no incoming transactions, as opposed to addresses that are more active.
Nine months ago, Glassnode reported on accumulation addresses reaching the 500k mark. “There are over 500,000 Bitcoin ‘accumulation addresses’ holding a total of 2.6 million BTC (~14%). Accumulation addresses: – have 2+ incoming txs – never spent BTC – were active in the past 7 years (accounting for lost coins) – exchanges & miners are excluded,” the analytics firm said at the time.
The current number of bitcoin addresses in accumulation recorded on Monday, May 24, 2021, was approximately 545,115 addresses, according to Glassnode stats.
Glassnode’s “The Week On-Chain” highlights “anecdotal indicators” from Bixen’s Mustafa Yilham recent tweet storm that alluded to miner sell pressure stemming from China.
“Observing the spending of miner coins demonstrates that whilst there is an uptick in miner-to-exchange flows,” Glassnode’s report notes. “Up from 100 BTC/day to 300BTC/day, this still represents a relatively small portion of the ~900BTC/day issuance,” the researchers said.
More than 16,000 addresses have been added to the sum of bitcoin addresses in accumulation since the first week of May. Following the dip to $30,066, bitcoin addresses in accumulation jumped higher.
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