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Permanent holder addresses have decided to go on a shopping spree, scooping up a staggering $23 billion worth of Bitcoin in the past month. 

More: How Bitcoin Performed this Week?

In an August 7 post on X, CryptoQuant founder and CEO Ki Young Ju declared, “I’m pretty sure something is happening behind the scenes.” Apparently, if $23 billion starts moving around, it’s totally a sign that something is cooking.

In the last 30 days, $22.8 billion, or 404,448 BTC waltzed into the arms of permanent holder addresses. Clearly, this is an indication that this stash has found a long-term home, “It's obviously accumulation”. 

Ki went on to add in a bold forecast that by the end of one year, entities across TradeFi, governments and bluechips will announce to have acquired bitcoin in Q3 2024; and the retail traders who filled their bags at the current discount will not regret filling their bags at a time when the macroeconomics were deeply out of the crypto market’s favor.

In another post on X the same day, Ki Young highlighted additional bullish factors, including increased activity from Bitcoin miners, proving once again that the crypto landscape never lacks enthusiasm. 

Miner capitulation is approaching its end

He said miner capitulation is almost over, highlighting that the Bitcoin hashrate was approaching an all-time high with mining costs in the United States being approximately $43,000 per coin. As such, the hashrate is more likely to remain stable if the price of the largest cryptocurrency does not dip below $43,000.

Miner capitulation refers to a situation in the cryptocurrency mining industry where a significant number of miners stop mining because it becomes unprofitable for them. This usually happens when the price of a cryptocurrency drops below the cost of mining, including electricity and hardware expenses. When miners capitulate, they often sell off their mined coins to cover their costs, which can lead to further downward pressure on the coin's price.

Related: Bitcoin Miners: How Mining Games Earn Real Crypto

This phenomenon is often seen during bear markets when prices are low, and the difficulty of mining remains high. Miner capitulation can sometimes mark the bottom of a market cycle, as the least efficient miners exit the market, leaving the more efficient ones to continue mining and potentially stabilize the network.

Retail Investors and Whale Activity

According to Ki, retail investors are nearly absent, with metrics indicating reducing activity of old whales, and at the same time, long-term holders with 3 or more years of Bitcoin selling their bags between March and June. However, he pointed out that the present moment starting from July has not recorded any significant amount of old whale selling pressure.

As of the end of July, the founder observed that whales had gone back to accumulating at an unprecedented rate.  This accumulation increased at a very high rate this week after the market corrected downwards on August 5. When the market dumped, Bitcoin crashed from $64,000 to $52,500, however, the coin has since recovered by 14% to reclaim the $57,000 price level.

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