Long-term investors persevere stockpiling Bitcoin, sucking up market supply, and assisting the cryptocurrency to sustain its broader surging trajectory.
Data presented by Glassnode reveals the total balance of stacked up Bitcoin held in “accumulation addresses” rose to a 3.5-year high of 2,852,658 BTC on Tuesday. That amounts to 15.34% of the total circulating supply of 18,658,031 BTC. The figure stood slightly lower at 14% three months ago.
Accumulation addresses are those that take at least two incoming non-dust allocations and have never expended funds. The metric ignores addresses that have been last active seven years ago or more to adapt for lost coins and those belonging to miners and crypto exchanges.
The balance sealed in accumulation addresses has increased 22% on a year-on-year basis and has grown by 80,000 BTC in the last week alone.
The continuous stockpile of Bitcoin has been creating a sell-side liquidity deficiency led by a heightened number of institutional buyers and has supported the recent price rally.
Additional on-chain metrics likewise back up the bullish perspective. For example, the number of coins kept in exchange addresses continues to fall, drawing more sell-positioned liquidity out of the market. The assets held on exchanges dropped to a 2.5-year low of 2,359,440 BTC on Monday.
Bitcoin is, as of writing this article, trading near $36,860, signifying a 5.02% gain on the day. The cryptocurrency broke out of a three-week-long downhill path with a 6% rise on Tuesday.
The breakout suggests an end to the recent tieback from the historical high of $41,968 reached on January 8 and a renewal of the bull run.
