What happened?
As of October 18, 2024, over 19 million Ether (ETH) has 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 the confidence of long-term investors in the future prospects of Ethereum.
The world’s largest stablecoin, USDT, also reached a historic high on October 20, 2024, surpassing a market capitalization of $120 billion for the first time.
The significant increase in the quantity of Ether in accumulation addresses, the record-high market capitalization of USDT, and the strong inflow of funds into Bitcoin ETFs all demonstrate the strong upward momentum of the cryptocurrency market.
The accumulation addresses of Ethereum have seen a substantial increase in ETH.
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 in these accumulation addresses is also seen as a strong indicator of confidence in the long-term market outlook.
According to a report by Burakkesmeci, an analyst at data company CryptoQuant, the quantity of Ether in accumulation addresses held by long-term holders has increased by 11.5 million ETH since the beginning of the year, representing a growth of about 65% and indicating an increasing trust in Ethereum from investors.
Burakkesmeci predicts that by the end of 2024, the total quantity of Ether in these addresses may exceed 20 million ETH.
Burakkesmeci points out that this is mainly due to the introduction of Ethereum spot ETF in July this year, which has driven institutional investment demand and demonstrates that cryptocurrencies are becoming a major focus of future financial development.
Tether’s market capitalization surpasses $120 billion for the first time, signaling the coming of a Bitcoin bull market?
In addition to Ether, Tether (USDT), the world’s largest stablecoin, reached a market capitalization of over $120 billion for the first time on October 20, 2024, setting a new historical high.
The increase in the supply of stablecoins, which serve as a bridge between fiat currency and digital assets, is often seen as a sign of an upcoming bull market, as investors tend to accumulate stablecoins before entering the cryptocurrency market.
According to data from blockchain data company Arkham Intelligence, over $86 million USDT has been sent to major exchanges such as Binance and Kraken in the past 48 hours, indicating buying pressure from upcoming investors.
With the increase in the supply of USDT stablecoin, investors generally expect Bitcoin to rebound in October, 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 surpass the key level of $68,700 this week, it is likely to confirm a market breakthrough.