BTC Accumulation is Happing

From the past few months BTC Accumulation increased due to the sudden fear of the  cryptocurrencies market like FTX collapse etc. Investors very much believe in BTC now rather than any coin as a safe investment. There are also various factors happening in the market which lead to accumulation of BTC. In today’s blog I’m going to write about why BTC accumulation is happening at such a huge level.

Last week on chain analytics company Glass Node announced that the number of Bitcoin wallets holding up to one BTC which is a hit record high of almost 1 million. The news came as a surprise to many given that the crypto market has been crashing since last November and the bear market bottom may not be in yet .As most of you will know a Bitcoin whale is a wallet address holds  over 1000 BTC. What some of you may not know is that there are other categories in this taxonomy.

Bitcoin Holder Categories in Taxonomy

According to Glass Node Bitcoin shrimps have accumulated almost 100000 BTC since FTX collapsed less than a month ago. Like as follows

1.Bitcoin shrimp:- Bitcoin shrimp are Bitcoin wallets which hold up to one BTC earlier but now Shrimps hold more than 1 BTC at every wallets.

2.Bitcoin crabs are Bitcoin wallets which hold between 1 and 10 BTC earlier but now Crabs holding more than 10 BTC in their wallets.

A record level of accumulation for Shrimps at the same time Bitcoin crabs have accumulated almost 200000 BTC since FTX collapsed. A record level of accumulation for these. It’s not entirely clear why there has been so much BTC accumulation happen over the last few weeks but there are over but there are a few possibilities and reasons for that.

Possibilities and Reasons of BTC Accumulation

1.Most crypto holders who are accumulating they believe that we are at or near the bottom of the crypto bear market which is possible but not likely to stay here.2.Regulation of scrutiny of the crypto industry has increased  significantly after collapse of FTX and Alameda. Research so much that the commissioner of the CFTC recently said that bitcoin’s BTC is the only commodity in crypto now this is significant because the CFTC commissioner was saying that Ethereum’s eth was also a commodity at the end of October. His sudden change in tone is concerning as any cryptocurrencies deemed to be a security by the SEC risks being delisted in the United states.

3. Everyone can see just how messed up the financial systems is and how much worse it’s getting with each passing day. Bitcoin is the only ideal hedge against this messed up financial system that’s why most crypto holders become holders in the long run. According to research by the Bank for International settlements namely called BIS between 50 and 60 percent of crypto holders become hodlers the caveat is that this research was conducted before all pandemic money printing and others such stuff.The moon boy to hodler conversion rate is likely much higher now. The continued adoption of crypto deposit the current crash is probably why the European Central Bank felt it was necessary to publish a blog post to insist that bitcoin’s recent resilience is quote an artificially induced last gasp before the road to irrelevance. This obvious cope system from the fact that the ECB does not want any competition for it’s upcoming digital EURO that is why the ECB  has been so hostile towards stable coins and it begs the questions of why it hasn’t attached smart contract smart contract cryptocurrencies like Ethereum in the same way as Bitcoin the answer might have something to do with circles recently released Euro stable coin.    

Conclusion

Recent days Bitcoin accumulation marks people shifting to mainstream platforms from altcoin and other projects. It does not mean that other projects are not good, there are multiple projects which are fundamentally so strong. Personally this bear market is an opportunity to buy and hold good and fundamentally strong coins. This is not financial advice, this is my opinion only towards markets. Do your own research before investment.