What happened?
As of October 18, 2024, over 19 million Ether (ETH) have been stored in “accumulation addresses” belonging to long-term holders, representing a growth of approximately 65% since early 2024.
With a price of $2,645 per Ether, the total value exceeds $50 billion, demonstrating the confidence of long-term investors in the future prospects of Ethereum.
The world’s largest stablecoin, USDT, also reached a historical milestone on October 20, 2024, surpassing a market capitalization of $120 billion for the first time.
The significant increase in the amount of Ether held in accumulation addresses, the record-high market capitalization of USDT, and the strong inflow of funds into Bitcoin ETFs all indicate the robust upward momentum of the cryptocurrency market.
Significant Increase in Accumulation Addresses for Ether (ETH)
Accumulation addresses refer to wallets on the Ethereum blockchain that have not made any withdrawals. Long-term holders who do not sell or withdraw their coins have always been an important indicator for traders and market participants. The Ether held in these accumulation addresses is considered a strong indicator of confidence in the long-term prospects of the market.
According to a report by Burakkesmeci, an analyst at data company CryptoQuant, the Ether held by long-term holders in accumulation addresses has increased by 11.5 million Ether since the beginning of the year, representing a growth of approximately 65% and indicating an increasing trust in Ethereum by investors.
Burakkesmeci further predicts that the total amount of Ether in these addresses may exceed 20 million by the end of 2024.
Burakkesmeci points out that this is mainly due to the introduction of Ethereum spot ETF in July this year, which has driven institutional investment demand and indicates that cryptocurrencies are becoming a major focus for future financial development.
Tether’s Market Capitalization Surpasses $120 Billion, Is the Bitcoin bull market coming?
In addition to Ether, Tether (USDT), the world’s largest stablecoin, surpassed a market capitalization of $120 billion for the first time on October 20, 2024, reaching a historical high.
Stablecoins, as a bridge between fiat currency and digital assets, typically signal the arrival of a bull market when their supply increases, as investors often accumulate stablecoins before entering the market to purchase cryptocurrencies.
According to data from blockchain data company Arkham Intelligence, over $86 million worth of USDT has been sent to major exchanges such as Binance and Kraken in the past 48 hours, indicating impending buying pressure.
With the increasing supply of USDT, investors generally expect Bitcoin to rebound in October, also known as “Uptober.”
Looking back at history, Bitcoin has typically performed strongly after October. For example, in 2020, Bitcoin experienced increases of 27% in October and 42% in November, leading to a six-month bull market.
Furthermore, as Bitcoin ETFs continue to attract inflows, the total net inflow reached a new milestone of $20 billion on October 17, surpassing the figure that took gold-backed ETFs five years to achieve in just 10 months.
Analyst Rekt Capital points out that if Bitcoin can break above the $68,700 level this week, it is likely to confirm a market breakthrough.