According to on-chain analysis, Bitcoin “permanent holder addresses” have amassed nearly $23 billion in assets over the past month. On August 7, Ki Young Ju, founder and CEO of CryptoQuant, expressed on X, “I’m pretty sure something is happening behind the scenes.” This remark was prompted by a noticeable surge in the 30-day demand for permanent Bitcoin (BTC) holders.
In total, approximately $22.8 billion, equivalent to 404,448 BTC, has been transferred to permanent holder addresses in the last month, which Ki described as “clearly accumulation.”
Bitcoin permanent holder addresses 30-day demand change. Source: CryptoQuant
Ki anticipates that within the next year, various entities—including traditional financial institutions, corporations, and governments—will disclose their Bitcoin acquisitions from the third quarter of 2024. He further elaborated on a separate post on X on the same date, highlighting additional bullish indicators such as Bitcoin mining activity.
“Miner capitulation is nearly over,” he noted, mentioning that the hash rate is approaching all-time highs and that U.S. mining costs are around $43,000 per coin. He suggested that the hash rate is likely to remain stable unless prices drop below this threshold. Ki also pointed out the absence of retail investors, reminiscent of the mid-2020 market conditions, and observed a reduction in activity from older whales—those who have held BTC for over three years—who sold off some of their holdings between March and June, but stated there is currently “no significant selling pressure from old whales.”
In late July, he remarked on the influx into permanent holder addresses, including exchange-traded funds, clarifying that not all remaining BTC is in custody wallets. “Whales are clearly accumulating, and it’s at an unprecedented level,” he stated.
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The trend of accumulation seems to have intensified following the market downturn on August 5, which saw BTC prices plummet to $49,800, as reported by Cointelegraph. Since then, the asset has recovered by 14%, regaining a value of $57,000 as of August 6. Additionally, the Bitcoin ‘Fear and Greed’ index has shifted from ‘extreme fear’ to a score of 29, indicating a slight recovery in market sentiment, although it still reflects fear.
Source: Bitcoin Fear and Greed Index
As of the time of writing, BTC was trading up by 1.7%, priced at $56,836.
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