- BTC accumulation increases ahead of the halving event.
- There has been an increase in market volatility in the last few days.
Bitcoins [BTC] Accumulation has reached a new milestone and the next halving is just a few hours away.
In a new one reportPseudonymous CryptoQuant analyst IT Tech noted that inflows into BTC accumulation addresses exceeded 27,000 BTC on April 16.
The analyst described an accumulation address as one with no record of outgoing transactions, with a balance of more than 10 BTC, no connection to centralized exchanges or miners, and with more than two incoming transactions.
The last transaction took place within the last seven years.
According to the report, the last record inflows to these addresses were on March 22, when they received 25,100 BTC.
Traders remain steadfast
It is no longer news that the crypto market has been declining in recent weeks. Accordingly, at press time at $61,234, the price of BTC has fallen 13% over the past seven days CoinMarketCaps Data.
However, despite the price drop, market participants continue to accumulate more coins ahead of the halving scheduled for April 19th.
The increase in BTC accumulation amid recent headwinds is due to expectations of a post-halving price rally.
Historically, the price of the coin has increased following past halving events. Accordingly Bloomberg's According to data, the price of BTC increased by over 8,000% a year after the halving in 2012.
Likewise, the coin's value increased by 295% one year after the 2016 event and by 559% 365 days after the 2020 event.
Source: Bloomberg
The current drop in selling pressure could be due to the coin’s steady decline in foreign exchange reserves.
According to data from CryptoQuantOver the last week, the amount of BTC held on crypto exchanges has decreased by 1%.
At the time of publishing this article, 1.94 million BTCs are held on exchanges, worth around $119 billion at the market price at press time.
Stay alert
With a few hours to go until the halving, market volatility increases.
Read Bitcoins [BTC] Price prediction 2024-25
The BTC daily chart readings showed that the gap between the upper and lower bands of the Bollinger Band indicator has been steadily widening over the past few days.
Source: BTC/USDT on TradingView
When the gap between these two bands widens in this way, it indicates an increase in volatility. This suggests that the price of the asset is moving more aggressively and may break out in either direction.
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