BTC-Newswire

Bitcoin ‘Permanent Holder’ Demand Is Sharply Rising: Fresh Rally Incoming?

Press Releases Crypto News Bitcoinist Bitcoin ‘Permanent Holder’ Demand Is Sharply Rising: Fresh Rally Incoming?

On-chain data shows the Bitcoin investors with no history of selling are back to intense accumulation, a sign that could be bullish for BTC’s price.

Bitcoin Accumulation Addresses Have Been Showing High Demand Recently

In a new post on X, the on-chain analytics firm CryptoQuant has talked about how the demand is looking from the Permanent Holders of Bitcoin. Permanent Holders, also known as Accumulation Addresses, refer to the BTC wallets that have never made an outflow transaction.

That is, the Permanent Holders are the investors who only have a history of buying and none of selling. There are also a few other restrictions on which addresses can fall inside this category, with a key one being that they shouldn’t be associated with miners or exchanges.

The reason behind this is that these two entities sort of play the role of selling pressure in the market. As such, the holdings attached to them can be looked at as the ‘sell supply’ of the cryptocurrency, which is the exact opposite of what the Accumulation Addresses represent.

Now, here is the chart shared by the analytics firm that shows the trend in the demand coming from these investors over the last couple of years:

The value of the metric appears to have been following a steep upwards trajectory in recent days | Source: CryptoQuant on X

As displayed in the above graph, the Bitcoin Accumulation Addresses were going through a buying spree during the last couple of months of 2024, but in January of this year, they saw their demand sharply go down and drop below the 30-day simple moving average (SMA).

Clearly, the accumulation from this cohort was what supported the bull run and it going away was the probable reason behind the slowdown in the cryptocurrency’s price that followed.

In the last few days, though, demand from the group has once again been showing acceleration, meaning that supply is constantly being locked in the hands of these HODLers.

Go to Source to See Full Article
Author: Keshav Verma

Did you like this?
Tip BTC Newswire with Cryptocurrency