In a strong momentum northwards, Bitcoin (BTC) has gained nearly 7% today moving past $40,000 levels. At press time, BTC is trading at $40,330 with a market cap of over $750 billion. This price rally comes with some improvements in on-chain metrics as long-term players continue to accumulate during the recent market volatility.
Over the last week, the total number of BTC accumulation addresses has been hitting new highs every day. Currently, the BTC accumulation addresses have clocked a new all-time high of 545,115.
Bitcoin surpassed $40,000, and the total number of accumulation addresses reached 545,115, rising to ATH for seven consecutive days, indicating that long-term investors are buying bottoms. pic.twitter.com/CITvxTkMOQ
— Wu Blockchain (@WuBlockchain) May 26, 2021
On Tuesday, May 25, on-chain data provider Santiment also reported about the rise in the Bitcoin whale addresses holding 1000+ BTC. Nearly 34 such whale addresses have been added to the network over the last week thereby clocking the largest accumulation stretch in the last four months.
?? #Bitcoin‘s whale addresses (holding 1k+ $BTC) have steadily been on the rise over the past week, and its price is showing it (+14.5% in 24h). 34 new addresses of this kind have emerged, making it the largest accumulation stretch in nearly 4 months. https://t.co/7HM4vtt8tH pic.twitter.com/Ma7qVEcKGC
— Santiment (@santimentfeed) May 24, 2021
On the other hand, the positive indicator is that the Bitcoin (BTC) whale deposits at the exchanges have cooled down recently. On the other hand, the stablecoin supply at the exchanges relative to Bitcoin has shot up. This suggests a strong buying demand in the short term.
Stablecoins Ratio MACD indicator says $BTC has enough bullets to go up.
There are relatively many stablecoins across all exchanges compared to $BTC holdings.
Chart? https://t.co/N4DKyQqQqa https://t.co/YfjwnyWmJo pic.twitter.com/zLLmz5nyE5
— Ki Young Ju 주기영 (@ki_young_ju) May 26, 2021
Hedge Funds and Institutions Start Taking Big Bitcoin Bets
On Tuesday, May 25, Ark Invest’s Cathie Wood announced that the firm purchased $20 million worth of Bitcoin. wood has been a strong advocate of Bitcoin and during the recent market crash, she stressed her strong belief in Bitcoin’s positive future. Wood said that the recent turmoil is part of Bitcoin’s volatile behavior and she is confident for the BTC price to touch $500,000 in the future.
Recently, there’s been a massive buzz with the energy consumption issue of Bitcoin. Following China’s crackdown, Elon Musk recently conducted a meeting with North America’s top Bitcoin miners. The miners have decided to form a Bitcoin Mining Council that promotes sustainable mining solutions and transparency.
Shark Tank star Kevin O’Leary recently said that a flood of institutional money will start coming back to Bitcoin once miners address the renewable energy issues.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.