Despite market volatility, institutional investors are accumulating crypto in droves. According to CryptoQuant, the sector is experiencing its second-largest institutional accumulation phase of 2024, marking a turning point for crypto adoption
Institutions storm the crypto market
The crypto sector is experiencing a pivotal period, characterized by a massive influx of institutional investors. Data from renowned analytics firm CryptoQuant reveals an unprecedented wave of institutional accumulation in 2024. This large-scale buying strategy targets assets whose prices have recently fallen.
” We observe an accumulation process of around 101,600 BTC in the last week, with a notable peculiarity: low collection volume in ETFs and falling prices” explains Cauê Oliveira, analyst at CryptoQuant.
Analyst Cauê Oliveira underlines that this trend reflects increased confidence among institutional investors in the long-term potential of the crypto market. These massive acquisitions suggest optimism about current price levels, which are seen as an attractive entry opportunity despite recent volatility.
This accumulation could have a significant impact on the entire market, potentially paving the way for increased stability and an upward price trend in the medium term.
A parallel with the historic increase of 2020-2021
Ki Young Ju, CEO of CryptoQuant, recently highlighted striking similarities between current activity on the Bitcoin network and the movements seen before the spectacular rally in late 2020. Despite moderate volatility, the data reveals daily transactions exceeding $1 billion to “whales” wallets.
This sustained pace of accumulation is reminiscent of the period in mid-2020, when Bitcoin stagnated around $10,000 for six months before beginning a dizzying rise.
Unlike the Bitcoin ETF launch period, where accumulation came mainly from issuing funds, the current phase seems to reflect a real opportunistic buying process on the part of large market players.
In conclusion, the massive institutional accumulation observed in 2024 in the crypto market could be the prelude to a new phase of growth.
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