According to on-chain data, Bitcoin holders have been accumulating at an average rate of +37,400 BTC per month since the start of 2023. This suggests that long-term investors remain bullish on Bitcoin despite the recent price volatility.
The accumulation trend is being driven by both individual investors and large institutions. Individual investors are buying Bitcoin through exchanges, while institutions are buying Bitcoin directly from miners.
The growing demand for Bitcoin from both individual investors and institutions is a bullish sign for the long-term outlook of the cryptocurrency. As more people adopt Bitcoin, the price is likely to continue to rise.
Here are some of the reasons why holders are accumulating Bitcoin:
Bitcoin is a scarce asset. There will only ever be 21 million Bitcoin mined, which makes it a scarce asset. Scarcity is one of the key factors that drives the price of an asset up.
Bitcoin is a decentralized asset. Bitcoin is not subject to government or financial institution control. This makes it a safe haven asset during times of economic turmoil.
Bitcoin is a store of value. Bitcoin is a digital asset that can be used to store value over time. This makes it a good alternative to traditional stores of value such as gold and cash.
