Bitcoin Sees Multi-Month High as 320K+ Addresses Prove Strong Support

The premier crypto asset, Bitcoin, consolidates near its past peak, as data shows over 320K active addresses engaged within the current range.

Bitcoin began the week on a strong note, reaching a multi-month peak of $69,500, though it fell short of hitting the crucial $70,000 mark. The cryptocurrency is now trading 7.37% below its all-time high of $73,737, recorded on March 14, 2024. 

Notably, IntoTheBlock’s data indicates high engagement among Bitcoin addresses near its previous all-time high, with over 320,000 active addresses interacting within this price range. Of these active addresses, about 220,000 have an average purchase price of $68,500. 

As Bitcoin consolidates near its old all-time high, more than 320,000 active addresses are interacting within this price range.

Notably, 220,000 of these addresses have an average acquisition price around $68.5k, suggesting a strong level of interest and potential support at… pic.twitter.com/GVwPVUhDYV

— IntoTheBlock (@intotheblock) October 21, 2024

This suggests a strong base of support, as many investors hold profitable positions at this level. Notably, profitability remains evident across all buy ranges above $60,000, indicating confidence among long-term holders. 

Institutional Accumulation Fueling Surge

In addition to retail interest, institutional players have also played an important role in the recent price surge. Lookonchain’s data highlights that BlackRock’s iShares Bitcoin Trust (IBIT) added 16,975 Bitcoin to its holdings, totaling roughly $1.17 billion.

This accumulation occurred alongside an 8% rise in Bitcoin’s price, suggesting a correlation between institutional buying activity and the recent price increase.

Further data from The Data Nerd confirms this trend, with Bitcoin exchange-traded funds (ETFs) accumulating a total of 32,370 BTC, worth approximately $2.13 billion, in the last week. Among these, IBIT was the most significant buyer, followed by Fidelity Wise Origin Bitcoin Fund (FBTC), which added 5,000 BTC.

Growing Confidence in Bitcoin

BlackRock’s recent accumulation coincides with comments from CEO Larry Fink, who emphasized Bitcoin’s legitimacy as an asset class. Fink highlighted that the cryptocurrency market’s growth is driven by factors like transparency, liquidity, and enhanced analytics rather than political influences. 

He noted that neither Donald Trump’s presidency nor Kamala Harris’ potential leadership would massively impact Bitcoin’s price movements. Instead, Bitcoin has emerged as a new asset class, akin to gold, indicating a shift in how institutional investors approach asset allocation.