Bitcoin’s surge fueled by significant accumulation

Bitcoin’s (BTC) recent surge was fueled by significant accumulation as investors remain bullish despite recent dips in trading over the past week, according to research by CryptoQuant analysis.

Just a few days ago, Bitcoin was sitting around $65,500, but a strong rally over the weekend pushed prices to $72,500 before the start of the trading week.

‘Huge accumulation’

The analysis from CryptoQuant points to a significant period of accumulation, reflecting high investor confidence in Bitcoin’s long-term potential and their increased holdings.

Notably, record reserves in Bitcoin accumulation addresses, held by long-term investors, have seen substantial inflows, reaching all-time highs. This trend indicates a strong belief in the enduring value of Bitcoin.

In addition, CryptoQuant notes a shift in behavior among long-term investors, with distribution patterns indicating a reluctance to sell Bitcoin, tightening supply and driving prices higher.

The issuance of approximately $3 billion in new USDT over the past week also contributed to the price recovery, as the stablecoin serves as a key gateway from fiat to crypto.

Historically, the introduction of new USDT has been closely linked to upticks in Bitcoin’s price, acting as a liquidity boost for increased trading and investment.

Sell-pressure easing

Following a correction phase in recent weeks, driven by profit-taking after Bitcoin hit new all-time highs, the price briefly dipped to $60,000 before rebounding.

The analysis indicates that the correction phase ended when $2.7 billion in profits were realized, signaling a halt to the downward trend and initiating the current rally.

Furthermore, the market has seen a reduction in selling pressure, as short-term holders have shifted away from selling, stabilizing and strengthening market conditions.