Crypto winter was not that cold with Bitcoin accumulation in full swing

Bitcoin

Most of us consider that crypto winter was a total disaster where everybody was rushing in to sell tokens and get back into fiat. However, a report from cryptocurrency outlet Diar indicates a slightly different picture.

According to the study, the number of wallets holding from 1,000 to 10,000 Bitcoins increased from the market bottom in December 2018 which means that many investors actually bought the dip expecting the next bull market phase.

The study took as reference point of the comparison August 2018 when Bitcoin was around the $8,000 level and noticed that “Firm Size” BTC addresses – from 1,000 to 10,000 Bitcoin – grew to occupy more than 26% of the overall supply, which represents more than $35 billion. In August 2018, Firm Size addresses controlled less than 20% of the total supply which leads to an increase of circa 7% in this period of time.

It is equally interesting to notice in the study from Diar that if we are to analyze the accumulation rate from December 2018 (market bottom) when Bitcoin stood at around $3,200, the Firm Size range of addresses invested around $450,000 to purchase BTC.

At this moment, the overall value of Firm Size wallets counts for $6 billion more than in August 2018 which clearly indicates the accumulation trend is focused on long-term resembling the 2014-2015 bear markets.

Why is this data relevant for traders and investors?

It is important for all of us to have this information so that we can understand that major companies and private players joined a cryptocurrency game where Bitcoin controls more than 50% of the overall market cap.

Though some analysts may contend that Bitcoin cannot surpass altcoins’ potential for growth, at least in a short period of time, if we are to look at the big picture we’ll understand that Bitcoin is here to stay and its influence on the cryptomarket is stronger than ever.

As the accumulation phase will soon finish, most investors and traders expect the next bull market phase to recommence in full swing.

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