What happened?
As of October 18, 2024, over 19 million Ether (ETH) have been stored in “accumulation addresses” held by long-term holders, representing a growth of approximately 65% since the beginning of 2024.
With each Ether priced at $2,645, the total value exceeds $50 billion, indicating that long-term investors have confidence in the future prospects of Ethereum.
The largest stablecoin, USDT, also reached a market capitalization of over $120 billion for the first time on October 20, 2024, setting a new all-time high.
The significant increase in the amount of Ether held in accumulation addresses, the record market capitalization of USDT, and the strong inflow of funds into Bitcoin ETFs all indicate the strong upward momentum of the cryptocurrency market.
Significant increase in Ether accumulation addresses
The so-called “accumulation addresses” refer to wallets on the Ethereum chain that have “not made 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 also seen as a strong indicator of confidence in the long-term market outlook.
According to a report by analyst Burakkesmeci from data company CryptoQuant, the Ether held in accumulation addresses by long-term holders has increased by 11.5 million coins since the beginning of the year, representing a growth of about 65%. This demonstrates that investors’ trust in Ethereum is increasing.
Burakkesmeci further predicts that the total amount of Ether in these addresses may exceed 20 million coins by the end of 2024.
Burakkesmeci points out that this is mainly due to the launch of the Ethereum spot ETF in July this year, which has driven institutional investment demand and indicates that cryptocurrencies are becoming a major focus of future financial development.
Tether’s market capitalization surpasses $120 billion, is the Bitcoin bull market coming?
In addition to Ether, the world’s largest stablecoin, Tether (USDT), reached a market capitalization of over $120 billion for the first time on October 20, 2024, setting a new all-time high.
Stablecoins, as the bridge between fiat currencies and digital assets, typically signal “the coming of a bull market” when their supply increases because investors often accumulate stablecoins before buying cryptocurrencies.
According to data from blockchain data company Arkham Intelligence, Tether’s treasury has sent over $86 million USDT to major exchanges such as Binance and Kraken in the past 48 hours, indicating buying pressure from upcoming market participants.
With the increase in the supply of USDT stablecoin, investors generally expect Bitcoin to rebound in October, also known as “Uptober.”
Looking back at history, Bitcoin has usually performed strongly after October. For example, in 2020, Bitcoin rose by 27% and 42% in October and November, respectively, leading to a six-month bull market.
Furthermore, as Bitcoin ETFs continue to attract fund inflows, the total net inflow reached a new milestone of $20 billion on October 17, surpassing the figure that took gold ETFs five years to achieve in just 10 months.
Analyst Rekt Capital points out that if Bitcoin can break through the $68,700 level this week, it is likely to confirm a market breakthrough.