What happened?
As of October 18, 2024, over 19 million Ether (ETH) coins 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 coin priced at $2,645, the total value exceeds $50 billion, indicating that long-term investors have confidence in the future prospects of Ethereum.
The world’s largest stablecoin, USDT, also reached a market capitalization of over $120 billion on October 20, 2024, setting a new historical high.
The significant increase in the quantity of Ether coins in accumulated addresses, the record-breaking market capitalization of USDT, and the strong inflow of funds into Bitcoin ETFs all indicate a strong upward momentum in the cryptocurrency market.
Significant increase in accumulated addresses of Ether (ETH)
The so-called “accumulation addresses” refer to wallets on the Ethereum chain that have “not made any withdrawals.” Long-term holders who do not sell or withdraw their coins have always been important indicators for traders and market participants. The Ether coins in these accumulated addresses are also seen as a strong indicator of confidence in the long-term market outlook.
According to the report by analyst Burakkesmeci from data company CryptoQuant, the quantity of Ether coins in long-term holders’ accumulated addresses has increased by 11.5 million coins, or approximately 65%, since the beginning of the year, indicating that investors’ trust in Ethereum is growing.
Burakkesmeci further predicts that the total quantity of Ether coins in these addresses may exceed 20 million by the end of 2024.
Burakkesmeci pointed out that this is mainly due to the launch of Ethereum spot ETF in July this year, which has driven institutional investment demand and demonstrated 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 on October 20, 2024, setting a new historical high.
Stablecoins, as a bridge between fiat currencies and digital assets, usually indicate that a bull market is coming when their supply increases because investors often accumulate stablecoins before buying cryptocurrencies.
According to data from blockchain data company Arkham Intelligence, Tether’s reserves have sent over $86 million USDT to major exchanges such as Binance and Kraken in the past 48 hours, indicating potential buying pressure from upcoming investors.
With the increasing supply of Tether, 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 rose by 27% in October and 42% in November, leading to a six-month bull market.
In addition, as Bitcoin ETFs continue to attract capital inflows, the total net inflow reached a new milestone of $20 billion on October 17, surpassing the figure achieved by gold ETFs in 5 years in just 10 months.
Analyst Rekt Capital pointed out that if Bitcoin can break above the $68,700 level this week, it is likely to confirm a market breakthrough.
