Crypto: Institutional Accumulation Reaches New Heights in 2024!
Despite market instability, institutional investors are massively accumulating cryptos. According to CryptoQuant, the sector is going through its second most significant phase of institutional accumulation in 2024, marking a decisive turning point for crypto adoption.
Institutionals on the Rise in the Crypto Market
The crypto sector is experiencing a pivotal period, characterized by a massive influx of institutional investors. Data from CryptoQuant, a renowned analysis company, reveals an unprecedented wave of institutional accumulation in 2024. This large-scale buying strategy targets assets whose prices have recently fallen.
“We observed an accumulation process of about 101,600 BTC last week, with a notable peculiarity: low volume in ETFs and declining prices,” explains Cauê Oliveira, an analyst at CryptoQuant.
Analyst Cauê Oliveira highlights that this trend reflects increased confidence among institutional investors in the long-term potential of the crypto market. These massive acquisitions suggest optimism regarding current price levels, seen as an attractive entry opportunity despite recent volatility.
This accumulation could have a significant impact on the overall market, potentially paving the way for increased stability and a bullish price trend in the medium term.
A Parallel with the Historic Rise of 2020-2021
Ki Young Ju, CEO of CryptoQuant, recently highlighted striking similarities between current activity on the Bitcoin network and movements observed before the spectacular rally at the end of 2020. Despite moderate volatility, data reveals daily transactions exceeding a billion dollars to the “whale” wallets.
This sustained accumulation rhythm recalls mid-2020 when Bitcoin was stagnating around $10,000 for six months before embarking on a steep ascent.
Unlike the period during the launch of Bitcoin ETFs, where accumulation primarily came from issuing funds, the current phase seems to reflect a genuine opportunistic buying process by major market players.
In conclusion, the massive institutional accumulation observed in 2024 in the crypto market could be the prelude to a new growth phase.
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Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.