Bitcoin Whales Are Accumulating at Unprecedented Levels, Says CryptoQuant CEO

Ki Young Ju, CEO of CryptoQuant, recently shared on social media platform X that Bitcoin (BTC) is currently in an accumulation phase.

He highlighted that in the past month, 358,000 BTC have been moved to addresses of long-term holders.

#Bitcoin is in an accumulation phase.

Over the past month, 358K BTC has moved to permanent holder addresses. In July, global spot ETF inflows were 53K BTC.

Though not all remaining BTC is in custody wallets, whales are clearly accumulating. And it’s an unprecedented level. pic.twitter.com/Cyl2ZVhIIX

— Ki Young Ju (@ki_young_ju) July 24, 2024

Ju pointed out that global spot ETF inflows for July were significantly lower at 53,000 BTC. He emphasized that this movement is not attributed to ETF wallets but indicates that large holders, or whales, are accumulating Bitcoin at unprecedented levels.

These addresses, described as custodial wallets, do not belong to exchanges or miners and show no outflows.

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To identify the transition from an accumulation phase to a distribution phase, Ju looks at indicators that measure changes in the realized cap over a month.

#Bitcoin is in an accumulation phase.

Over the past month, 358K BTC has moved to permanent holder addresses. In July, global spot ETF inflows were 53K BTC.

Though not all remaining BTC is in custody wallets, whales are clearly accumulating. And it’s an unprecedented level. pic.twitter.com/Cyl2ZVhIIX

— Ki Young Ju (@ki_young_ju) July 24, 2024

He explains that a distributive environment is characterized by low inflows to accumulation addresses and a high realized cap within a short period, driven by retail activities such as deposits to exchanges.

The realized cap metric tracks the value of Bitcoin based on its price when it last moved, providing insights into how many holders are in profit or loss.

Alexander Stefanov