Key Points
- Bitcoin (BTC) is ending a year-long accumulation spree that started at the end of the 2022 bear market.
- The number of coins held in accumulation addresses is decreasing for the first time since Q1 2023.
The accumulation phase of Bitcoin (BTC) that began at the close of the 2022 bear market is coming to an end, according to data.
On-chain analytics firm Glassnode reports a decline in BTC held in accumulation addresses, a trend that hasn’t been seen since the beginning of 2023.
Accumulation Wallets Shedding BTC
Despite Bitcoin reaching record highs recently, there appears to be a sell-off happening behind the scenes, with holders starting to take profits.
Glassnode’s data reveals that the number of coins in “accumulation addresses” – wallets that have no outgoing transactions and at least two inbound ones – is decreasing.
This shift started on February 11, breaking a year-long tradition, coinciding with BTC/USD returning to $48,000, a critical long-term trading range’s peak.
Since then, the balance in accumulator wallets has fallen 2.6% to 3,176,293 BTC (equivalent to $212 billion) and shows no signs of reversing.
Long-Term Accumulation Trend Still Intact
Despite the decreasing exposure, accumulator wallets have historically spent extended periods accumulating coins at a discount, only starting to sell at the beginning, not the end, of significant uptrends.
When looking at the balances throughout Bitcoin’s existence, a broader accumulation trend that has been in place since mid-2018 still holds strong. This trend contrasts sharply with a significant reduction that began in 2016, just as Bitcoin started its run to the old $20,000 all-time highs.
The launch of the United States spot-Bitcoin exchange-traded funds (ETFs) in January has uniquely impacted supply dynamics.
Consistent buying pressure has led to phenomena never seen before, including hitting an all-time high before a block subsidy halving.
Timothy Peterson, founder and investment manager at Cane Island Alternative Advisors, suggests that ETF demand could push Bitcoin to six figures as early as 2024.
Peterson compared unspent transaction output (UTXO) numbers to BTC price performance, noting a growth of 0.34% per day.
