Investors accumulate Bitcoin during market lull
The Volume and Realised Cap Net Position Change indicators shows that people who own Bitcoin are holding onto it and not selling at current prices. They’re even buying more.
We’ve seen these same signs before big price changes, so let’s break it down.
Lately, Bitcoin’s price hasn’t been changing much, leading to the Realised Capitalisation Net Position Change indicator hovering around zero.
The average trading volume per exchange has dipped to 0.44 BTC per active address. This lower activity has lasted for more than 500 days.
We saw a similar pattern in 2018 and late 2020, after which the value of Bitcoin went up.
Holders are rapidly adding to their reserves, accumulating 50,000 BTC each month.
MicroStrategy, the largest public holder, has amassed 158,245 BTC at a total cost of $4.3 billion.
Major players are anticipating the start of a crypto rally in late 2023 or early 2024.
As a sign of this growing interest, the world’s largest investment company, BlackRock, spent $400 million on shares in the biggest Bitcoin miners and is working on a Bitcoin ETF.
Additionally, billionaire and hedge fund manager Paul Tudor Jones announced he wants to put 5% of assets into Bitcoin. In 2020, he already put up to 2% and said “Bitcoin is a great way to protect his wealth over the long run”.
