According to crypto analyst Ali, Bitcoin whales, or large BTC holders, have recently moved 21,400 BTC, valued at approximately $1.40 billion, into accumulation addresses. This significant shift in assets to long-term addresses suggests a bullish outlook among these market players.
"21,400 BTC, worth around $1.40 billion, were moved to accumulation addresses," Ali wrote in a tweet accompanied by a chart showing a spike in BTC inflow to accumulation addresses. On April 1, 21,400 BTC were recorded as inflows into accumulation addresses.
Accumulation addresses refer to those that have seen at least two incoming non-dust transfers and have never spent funds.
The move of 21,400 BTC to accumulation addresses coincides with a period of volatility and uncertainty on the cryptocurrency market. Bitcoin declined to start the month and quarter following unexpected gains in the dollar index (DXY).
Bitcoin fell to a low of $64,500 on April 3 before recovering somewhat. BTC had risen 0.66% in the previous 24 hours to $66,133 at the time of writing.
That said, the movement of such a large volume of Bitcoin into these addresses might indicate a strategic decision by whales to hold onto their assets, anticipating future price increases.
Bitcoin halving in next 16 days
April might be volatile for cryptocurrency and related equities, particularly mining stocks. Investors are anticipating the Bitcoin halving, which will reduce the reward, and thus earnings, of Bitcoin miners. The event may hurt miners' performance, but it has traditionally set Bitcoin up for 300% or more rallies in the following months.
According to Oklink, the current countdown to Bitcoin's halving is 16 days, with a projected date of April 20. The remaining blocks for this event that would reduce Bitcoin mining rewards from 6.25 BTC to 3.125 BTC are 2,328.
In a precursor to Bitcoin's "halving," an offshoot cryptocurrency known as Bitcoin Cash just underwent a halving event.