What happened?
As of October 18, 2024, over 19 million Ether (ETH) have been stored in “accumulation addresses” held by long-term holders. These addresses have grown by approximately 65% since the beginning of 2024.
With Ether priced at $2,645 per coin, 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 market cap of over $120 billion for the first time on October 20, 2024, setting a new historical high.
The significant increase in the amount of Ether held in accumulation addresses, the record-breaking market cap of USDT, and the strong influx of funds into Bitcoin ETFs all indicate the robust upward momentum of the cryptocurrency market.
Significant increase in Ether accumulation addresses
The so-called “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 in these accumulation addresses is also seen as a strong indicator of confidence in the long-term market outlook.
According to the report by CryptoQuant analyst Burakkesmeci, the amount of Ether held by long-term holders in accumulation addresses has increased by 11.5 million coins since the beginning of the year, representing a growth of approximately 65%. This indicates 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 Ethereum spot ETF in July this year, which has driven institutional investment demand and also demonstrated that cryptocurrencies are becoming a major focus for future financial development.
Tether market cap surpasses $120 billion for the first time, is the Bitcoin bull market coming?
In addition to Ether, the world’s largest stablecoin, Tether (USDT), reached a market cap of over $120 billion for the first time on October 20, 2024, setting a new historical high.
Stablecoins, as a bridge between fiat currencies and digital assets, often signify the arrival of a bull market when their supply increases because investors tend to accumulate stablecoins before buying cryptocurrencies.
According to data from blockchain analytics 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 the buying pressure from incoming investors.
With the increasing supply of USDT, investors generally expect a rebound in Bitcoin in October, which is known as “Uptober”.
Looking back at history, Bitcoin has typically shown strong performance 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 inflows, the total net inflow reached a new milestone of $20 billion on October 17, taking only 10 months to surpass the figure that took gold ETFs five years to achieve.
Analyst Rekt Capital points out that if Bitcoin can surpass the key level of $68,700 this week, it is likely to confirm a market breakthrough.