Rising Retail Accumulation and Exchange Withdrawals Propel Bitcoin’s Bullish Trend

Over the past 30 days, the Bitcoin (BTC) ecosystem has experienced a substantial surge in accumulation, with roughly 88,000 BTC being added on a net basis. This period of strong accumulation, which has extended through most of September, is particularly notable because the amount amassed is about seven times higher than the typical monthly issuance of Bitcoin, which is around 13,500 BTC. Such intense accumulation has not been observed since the fourth quarter of 2023, a period that coincided with a sharp increase in Bitcoin’s price, suggesting a potential parallel in market behavior.

A deeper analysis of the recent accumulation trend shows that retail investors, especially smaller holders, are playing a key role in driving this growth. Investors who own less than 10 BTC, commonly referred to as “crabs” (with less than 10 BTC) and “shrimps” (holding under 1 BTC), have collectively acquired 35,000 BTC in the past 30 days. This trend has been ongoing since May, and it underscores the rising confidence and active participation of smaller investors, who see long-term value in the cryptocurrency despite market volatility. The steady involvement of retail investors is becoming a significant factor in the overall Bitcoin ecosystem.

In addition to retail accumulation, another notable factor contributing to Bitcoin’s bullish outlook is the large outflow of Bitcoin from exchanges. Over the past month, approximately 40,000 BTC have been withdrawn from exchanges, reducing available liquidity. When Bitcoin is removed from exchanges, it often indicates that holders plan to hold their assets for the long term, reducing the immediate selling pressure and creating a positive environment for price appreciation. With 74% of the circulating supply now classified as illiquid, this supports the notion that Bitcoin’s current upward momentum could continue in the coming months, potentially driving further price gains.

This mix of retail buying and reduced exchange supply suggests a bullish market trajectory ahead.

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