Bitcoin Accumulator Addresses See Surge in Demand
- Bitcoin accumulator addresses experienced a significant increase in demand in December.
- 225,280 BTC were acquired by these investors as of Dec. 23.
- This surge in demand represents an 82.6% monthly increase.
Sell-Side Liquidity Declines
- Total sell-side liquidity, including Bitcoin available for selling on exchanges and ETFs, decreased by approximately 590,000 BTC.
- Between Dec. 22 and Dec. 23, the amount of Bitcoin ready for selling dropped by 520,000 BTC.
Demand Overpowers Sell Pressure
The supply on over-the-counter trading desks decreased from over 421,000 BTC to 403,000 BTC, indicating that investor demand is absorbing sell pressure.
- The liquidity inventory ratio dropped from 12 months to 5.5 months in December.
- Bitcoin whales sold nearly 8,600 BTC this month, but new investors are absorbing this supply.
Potential Short-Term Downsides
Bitcoin has corrected by 14.2% since reaching its all-time high on Dec. 17, but analysts predict a rebound in its upward movement.
However, caution is advised as the supply of Tether USD in exchanges is decreasing while BTC supply is slightly increasing, signaling potential short-term weakness.
Summary
Despite recent fluctuations, Bitcoin continues to attract investor interest, with demand outweighing sell pressure. Caution is advised in the short term due to changing supply dynamics.
