Bitcoin News Today: Bitcoin Institutional Accumulation Surpasses 160000 BTC in 30 Days

The recent surge in Bitcoin accumulation, particularly among institutional investors, has intensified market speculation about the cryptocurrency’s long-term viability. According to on-chain data from CryptoQuant, long-term holders have absorbed approximately 160,000 BTC over the past 30 days, a significant figure that reflects growing institutional confidence in the asset [1]. This accumulation outpaces the monthly supply of newly mined Bitcoin by over 11 times, signaling a strong imbalance between supply and demand [1].

The trend is further supported by the declining over-the-counter (OTC) supply of Bitcoin, which suggests reduced selling pressure from large market participants [1]. Accumulator addresses have increased their BTC holdings by about 50,000 BTC within the same timeframe, indicating a shift in market dynamics toward long-term holding strategies [1]. This behavior is typically associated with bullish sentiment and can be seen as a sign of market maturation.

Institutional and whale investors are the primary drivers of this accumulation trend. As these entities continue to build their BTC positions, they are effectively reducing circulating supply, which could support higher prices in the future [1]. However, Axel Adler Jr., a CryptoQuant analyst, cautions that early signs of market cooling are emerging. He notes that long-term holders are beginning to take profits, leading to the formation of a lower high—a pattern often observed in the later stages of a bull market [1]. This profit-taking may exert downward pressure on prices in the short term, but historical data indicates that such corrections are usually temporary, with the long-term trajectory remaining intact.

The broader macroeconomic environment also plays a role in shaping investor sentiment. The potential for Federal Reserve rate cuts could further stimulate demand for Bitcoin and other digital assets, as investors seek higher returns in a low-interest-rate climate [1]. This expectation is already influencing market behavior, with many participants anticipating upside potential as macroeconomic conditions evolve.

Despite short-term volatility, the overall trend of institutional accumulation and reduced OTC supply suggests that Bitcoin is becoming an increasingly integral part of diversified investment portfolios. As long-term holders continue to absorb supply, the market is likely to see further consolidation before any significant upward move [1].

Source: [1] CryptoQuant Data: Bitcoin Demand and Accumulation Rise https://coinmarketcap.com/community/articles/6890c50aed9a175f01ae4bed/