It is Interesting that regardless of the fact that the price of the digital gold dipped in recent times, investors are still stashing their monies in bitcoin and other cryptocurrencies.
Information from Glassnode has it that bitcoin is currently dangling at a $10,000 from $12,400 and the quantity of accumulation addresses have surged by 2%.
The CEO of a Singapore Three Arrows Capital, Su Zhu, explained that:
Lots of new daily buyers are coming in to absorb supply
Oscar Godbole defines Accumulation addresses to mean “those that have at least two incoming non-dust transfers (representing minuscule amounts of bitcoin) and have never spent funds.”
He went on to explain that:
“The metric excludes addresses belonging to miners and exchanges, and addresses active more than seven years ago to exclude lost coins.”
This stark contrast between the dipping of bitcoin prices and accumulation addresses is an indication that bitcoin sharks believe that the momentary downturn of events is just one of those things, being an outplayed of the expected market dip and rise cycle. Just like before, they believe that the prices will rise again.
Zhu emphasized via twitter that “Markets typically retrace one third or more in a bull market after local euphoria.”
He continued that:
“I am flabbergasted by the strength shown at $10,000, and it probably means $100,000 is more likely than $5,000 at this stage,”