The current correction is due to macroeconomic factors, which can be seen as a process of unwinding the premium built into coins, stocks, and commodity markets as the pace of interest rate cuts next year may not be as fast as expected. Therefore, in the short term, macroeconomic factors may have a relatively larger impact on prices.
On the other hand, looking at #Ethereum's Accumulation address holdings, we can see a dramatic increase since August, amounting to 16% (19.4M ETH) of the total supply of 120M ETH. In terms of growth rate, this represents a 60% increase from 10% in August to 16% in December. This steep increase is unprecedented in previous cycles.
This reflects expectations of DeFi regulatory de-risking as part of Trump's pro-crypto policies following his election, and suggests that smart money is likely to accumulate aggressively regardless of price.
For reference, their realized price (average unit price) is $2.15k, and Historically, the price has rarely fallen below their realized price. Therefore, while there is a possibility of a correction in the short term due to macroeconomic factors, we believe the long-term upside potential is high given the continued increase in accumulation holdings.
Written by MAC_D
