- Bitcoin accumulation addresses surge to new all-time peaks even as BTC exchange balances decline.
- El Salvador is among the market participants that bought the ongoing dip.
- The metrics had market pundits expecting optimistic bounces from the crypto.
Bitcoin still exhibits bullish on-chain metrics amid the market-wide bearishness. The past few days had BTC accumulation addresses increasing by over 10%. That way, it hit an ATH of more than 550,000 addresses. Institutions and nation-states might have contributed to BTC accumulators surges.
BTC Accumulation Rate Surges as El Salvador Purchases the Dip
Data from crypto intelligence platform Glassnode shows BTC accumulation addresses have maintained uptrends. The leading crypto has had more than 20,000 new addresses since December. That translates to a nearly 3.2% increase within the past two months.
BTC accumulation addresses index considers addresses that never used funds and with more than two incoming no-dust transactions. Glassnode states that the metric does not consider lost coins and exchange addresses for accuracy. Lost coins mean those that have never been active for the past seven years. The surge in this figure presents a bullish picture for Bitcoin and suggests a potential supply squeeze that may push BTC prices higher.
The rapid drop in BTC crypto exchange reserve supports the accumulation metric by Bitcoin. The metric measures BTC coins for sale on crypto exchanges, and it stands near its early this month all-time-low of 2.30 million, exploring $2.37 million level at this publication.
El Salvador has been among the investors that bought the latest dip. The nation’s president, Nayib Bukele, reveals adding 410 BTCs to the country’s stash. The crypto fall also had the leading investment management corporation BlackRock plan to launch a blockchain-focused exchange-traded fund (ETF).
Bitcoin’s Optimistic View
The surging accumulation shows investors buying the current dip. That is why market pundits remain unbothered by the colossal liquidations and massive crypto market cap declines. @Crypto_Mystery, a crypto analyst, stated that institutional adoption means a positive sentiment. The analysts believe bears are yet to dominate the market. However, the upcoming sessions might have more. Stay tuned for up-to-date crypto news.