- BTC accumulation increases ahead of the halving.
- Market volatility has increased in recent days.
Bitcoins [BTC] The accumulation has reached a new milestone, with the next halving just a few hours away.
In a new reportpseudonymous CryptoQuant analyst IT Tech discovered that on April 16, inflows to BTC accumulation addresses exceeded 27,000 BTC.
The analyst described an accumulation address as one with no record of outgoing transactions, a balance of more than 10 BTC, no link to centralized exchanges or miners, and receiving more than two incoming transactions.
The most recent transaction took place within the last seven years.
According to the report, the last ever high inflow to these addresses was recorded on March 22, when they received 25,100 BTC.
Traders remain steadfast
It is no longer news that the crypto market has fallen in recent weeks. According to the report, the price of BTC has fallen by 13% over the past seven days, while at the time of writing it was worth $61,234. CoinMarketCaps facts.
However, despite the price drop, market participants continue to accumulate more coins ahead of the halving event scheduled for April 19.
The surge in BTC accumulation in light of the recent headwinds is due to expectations of a price rally after the halving.
Historically, the price of the coin has risen dramatically after previous halving events. According to Bloombergs According to data, the price of BTC rose by more than 8,000% a year after the halving in 2012.
Similarly, the value of the coin increased by 295% a year after the 2016 event and by 559% 365 days after the 2020 event.
Source: Bloomberg
The current decline in selling pressure could be inferred from the steady decline in the currency’s exchange reserve.
Per data from CryptoQuantOver the past week, the amount of BTC held on crypto exchanges has fallen by 1%.
At the time of writing, 1.94 million BTCs worth approximately $119 billion at market prices at the time of writing are held on exchanges.
Stay alert
With just a few hours to go until the halving, market volatility is increasing.
Read Bitcoin’s [BTC] Price forecast 2024-25
Readings from BTC’s daily chart showed that the gap between the upper and lower bands of the Bollinger Bands indicator has been steadily widening in recent days.
Source: BTC/USDT on TradingView
When the gap between these two bands widens in this way, it indicates an increase in volatility. It suggests that the asset’s price is moving more aggressively and could break out in either direction.