Hot topic interpretation:
Data: In December, Bitcoin accumulation addresses increased by 225,000 coins. The latest report from CryptoQuant shows that as of December 23, accumulation addresses have net increased by 225,280 BTC this month, an increase of 82.6% month-on-month. During the same period, total seller liquidity (the number of Bitcoin available for sale in exchanges and ETFs) decreased by approximately 590,000 coins, with a sharp decline of 520,000 coins between December 22-23. OTC trading supply fell from 421,000 coins to 403,000 coins, and the liquidity inventory ratio decreased from 12 months to 5.5 months. Notably, whale addresses holding over 1,000 BTC reduced their holdings by nearly 8,600 BTC this month, but short-term holders have reached 3.81 million coins, just 70,000 coins shy of historical peaks.
We believe that there has been a noticeable accumulation of BTC this month, with increased holdings possibly reflecting the market's optimism about Bitcoin's long-term value. Meanwhile, total seller liquidity has decreased, particularly with a sharp decline of 520,000 coins between December 22-23, indicating a reduction in the available Bitcoin for sale, which could support Bitcoin's price. The decline in over-the-counter (OTC) trading supply and liquidity inventory ratio further indicates a tightening of market liquidity. Although whale addresses have reduced their holdings, short-term holders have reached 3.81 million coins, nearing historical peaks, which may suggest an increase in market participation and potential volatility. The Bitcoin market has undergone significant changes in liquidity and holding distribution, and we pay close attention to how this data is important for understanding market dynamics and predicting future trends.
Financing situation:
In the past week, several projects successfully completed financing, involving a wide range of applications in DeFi, stablecoin protocols, cross-chain bridges, and other fields. According to statistics, from December 21 to December 27, a total of 9 projects announced financing, with known project financing amounts totaling approximately $24.6 million.
The following are the top four financing scales:
Usual - Usual completed a $10 million Series A financing, with participation from Binance Labs, Kraken Ventures, and others. Usual is a decentralized stablecoin issuance platform that achieves distributed ownership and governance of infrastructure and treasury through the governance token $USUAL, avoiding bank and counterparty risks while granting users control over protocol cash flows and governance, promoting the sustainable decentralized development of the ecosystem.
Avalon Labs - Avalon Labs completed a $10 million Series A financing, with participation from Framework Ventures, UXTO Management, and others. Avalon Labs is an innovative company focused on the development of the Bitcoin DeFi ecosystem, primarily issuing BTC-backed stablecoin USDa. The company is dedicated to transforming Bitcoin from a traditional digital value storage tool into a more functional financial instrument, providing users with diverse application scenarios.
Swan Chain - Swan Chain completed a new round of financing of $2 million, with participation from DWF Labs, Optimism Foundation, and Promotony. Launched in 2021, Swan Chain is a decentralized infrastructure aimed at accelerating AI applications. Utilizing OP Stack's Ethereum Layer 2 technology, Swan Chain combines Web3 with AI to provide a comprehensive solution covering storage, computation, bandwidth, and payments. By leveraging the underutilized computing power in the community data center network, Swan Chain can significantly reduce computing costs by up to 70% while monetizing idle computing assets.
RuneMine - RuneMine completed a $2 million financing, with undisclosed investors. RuneMine is a Bitcoin infrastructure protocol dedicated to enhancing interoperability between Bitcoin and other blockchain networks, primarily Solana. Through its innovative bridging solution, RuneMine enables users to securely and efficiently transfer Bitcoin-related assets across multiple ecosystems.
BTC spot ETF data analysis:
This year, 9 new ETFs in the United States and MicroStrategy collectively increased their holdings by more than 1.1 million BTC. According to Coinank data monitoring, since the launch of the Bitcoin spot ETF in the United States, there have been over 1.1 million BTC transferred to 'strong(er) hand', including 9 new ETFs and MicroStrategy. In addition, Grayscale GBTC/BTC has sold a total of 373,787 BTC, while the German government sold 50,000 BTC, and mining output has produced 209,683 BTC.
We believe that since the launch of the Bitcoin spot ETF in the United States, there has been a significant influx of funds into the market, with over 1.1 million BTC transferred to long-term holders, including 9 new ETFs and MicroStrategy's increased holdings. With growing interest from institutional investors and compliant investment products, the investor base for Bitcoin is becoming more solid and diversified. At the same time, the large sell-off of Grayscale GBTC/BTC and the German government's Bitcoin sell-off may put some pressure on the market. However, the new Bitcoin produced through mining is relatively low, at only 209,683 coins, limiting the increase in market supply, while the increasing demand from long-term holders may support Bitcoin's price. This reflects the market's optimism about Bitcoin's long-term value and the growing influence of institutional investors in the cryptocurrency market.