According to a new report, Bitcoin (BTC) accumulation is on the rise in recent weeks. Bitcoin hodlers are saving more BTC daily now than at any other time last year.
The question remains whether the next halving planned for May is the main reason behind this, or is it something else.
According to data provided by the monitoring resource, Glassnode Insights, # 1 cryptocurrency has seen many phases of accumulation in the past year. However, none seem more impressive than the current stage. Hodlers are adding approximately 75,000 BTC to their positions every day.
As the chart above demonstrates, the past year has been pretty “green” in terms of BTC accumulation. For starters, when the asset price was trading below $ 6,000 in May 2019, buyers bought over 25k per day.
After the price exploded above $ 12,000, the market experienced a serious selloff. However, since September 2019, BTC hodlers have been accumulating significant chunks regularly.
However, it is worth noting that the data may also include exchange wallets.
Is the next bitcoin halving causing this accumulation effect?
The current accumulation rate comes in support of a similar earlier document. As previously reported, Bitcoin whales bought record amounts of the largest cryptocurrency by market cap. The number of entities with at least 1,000 BTC was in a maximum of 2 years.
Also, the last time there was a similar increase in BTC whales was in early 2016. And in July of that same year Bitcoin's second halving occurred.
Fast forward to today, the third having it's just around the corner, and accumulation rates are at substantially high levels. Naturally, this begs the question of whether the event programmed to be carried out in less than 20 days is the main reason.
Historically, the price of the asset has increased in the years after the two previous halvings. However, the situation now may be something different.
Not only is the story not a valid price indicator, but many members of the community believe that Bitcoin has already made a rise due to the event.. Others are even more pessimistic, claiming that the COVID-19 crisis could lead to massive competition among miners with effects devastating at the price of BTC.
Other important factors
However, that same coronavirus crisis could present another theory as to why people are accumulating Bitcoin now. This much more speculative account of the current reality of central banks and governments that print tons of fiat currencies. According to some experts, this could decrease its value and even bring hyperinflation to the scene. Therefore, people should look for alternatives.
Since Bitcoin has a maximum limit of 21 million, it certainly presents an alternative. No central authority can decide to print more.
To support this speculative theory, recent data from Coinbase involved that the number of deposits with an exact value of $ 1,200 soared. Interestingly, this coincided with the first stimulus checks sent to US citizens who contained exactly $ 1,200.
However, perhaps both theories are very far from the truth. However, these combined data revealed that more and more people are accumulating the # 1 cryptocurrency in the market, for now, it would be interesting to follow what happens in the coming months.