In recent analysis, Bitcoin is witnessing a significant demand shock as a result of heavy accumulation. A surge in the number of ‘accumulation addresses’ has been noted, indicating that more investors are holding Bitcoin, thereby shrinking its available supply and potentially driving up its price. The increase in demand is also reflected in the declining balance of Bitcoin on exchanges, which has reached its lowest point since 2018, suggesting that investors are moving their cryptocurrency to private wallets for long-term storage.
This Bitcoin accumulation trend is believed to be driven by several factors, including institutional adoption, the rise of DeFi, and macroeconomic uncertainty prompting investors to seek digital gold. The scarcity of Bitcoin, coupled with a surge in demand, could potentially lead to a price increase. Moreover, as the Bitcoin network gets stronger and more decentralized, the digital asset’s value is expected to grow, making it a promising investment for both retail and institutional investors.
