Bitcoin “Permanent Holder” Addresses Amass $23B Amid Market Volatility

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The Bitcoin “permanent holder” addresses have accumulated nearly $23 billion worth of the cryptocurrency over the past month. This major accumulation was highlighted by CryptoQuant founder and CEO Ki Young Ju, who hinted at potential behind-the-scenes developments.

On August 7, Ki Young Ju took to X to share his observations, exclaiming, “I’m pretty sure something is happening behind the scenes.” His comment referred to a notable spike in the 30-day demand change for permanent Bitcoin holders. According to Ki, approximately $22.8 billion, or 404,448 BTC, has moved to these addresses in the last 30 days, indicating a clear pattern of accumulation.

Massive Acquisitions Ahead

Ki Young Ju further speculated that within a year, significant entities—such as traditional financial institutions, corporations, or governments—might announce their acquisition of Bitcoin in Q3 2024.

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He suggested that retail investors might regret not buying BTC due to concerns over macroeconomic factors like the German government’s Bitcoin sales or the Mt. Gox trustee’s plans to sell recovered Bitcoin.

In another post on X on August 7, Ki noted that Bitcoin miner activity was nearing a pivotal point. “Miner capitulation is nearly over,” Ki stated, emphasizing that the hashrate is approaching all-time highs. With U.S. mining costs around $43,000 per coin, he believes the hashrate is likely to remain stable unless Bitcoin prices fall below this level.

Retail Investors’ Absence

Ki also observed that retail investors are mostly absent from the market, a situation reminiscent of mid-2020. He noted a decrease in activity among long-term holders, particularly those who have held Bitcoin for over three years.

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These holders sold off some assets between March and June but have not exerted significant selling pressure recently.

Based on these observations, Ki concluded that the bull market for Bitcoin remains intact. “If the market doesn’t recover in two weeks, I’ll reconsider,” he said, adding that he follows smart money. If his analysis proves incorrect, it would suggest that new whales may have underestimated the macroeconomic environment.

Bitcoin’s Volatility

Despite the optimism from some quarters, Bitcoin’s market volatility remains a concern. A key volatility indicator, the Bitcoin Volmex Implied Volatility Index, reached its highest level in 20 months on August 5, hitting 97.14. This spike occurred as Bitcoin briefly dipped to $49,813, marking the highest volatility since November 2022, when the cryptocurrency exchange FTX collapsed.

Although Bitcoin has since recovered to trade at $57,000 at the time of writing, futures traders continue to speculate about potential further declines. Pseudonymous crypto trader Yoddha has even suggested that the current market conditions might represent “the best buying opportunity of 2024.”

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