Bitcoin in Accumulation Phase, Says CryptoQuant CEO
Bitcoin (BTC) is currently in an accumulation phase, according to Ki Young Ju, the CEO of CryptoQuant.
On the social media platform X he shared that 358,000 BTC were moved to long-term holder addresses over the past month.
Ki Young Ju highlighted that global spot exchange-traded fund (ETF) inflows in July were only 53,000 BTC. He noted that while not all the remaining BTC is stored in custody wallets, it is evident that large holders are accumulating BTC at an unprecedented rate.
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The recent influx of Bitcoin into long-term holder addresses is not attributed to ETF wallets. These addresses are neither exchange nor miner wallets and exhibit no outflows, indicating they are mostly custodial wallets.
To identify the early stages of a transition from an accumulation phase to a distribution phase, Ki Young Ju uses indicators that capture the increase in realized cap over a month. If there are low inflows to accumulation addresses and a high realized cap within a month, driven by retail activities such as deposits to exchanges, it indicates a distribution environment.
The realized cap metric records the price of each Bitcoin when it last moved, providing insight into how many holders are in profit or at a loss.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
