Key takeaways:
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Bitcoin rallied to $113,800 as onchain data shows a 71% surge in the BTC holdings of accumulator addresses.
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Bitcoin’s MVRV metric suggests that meaningful profit-taking may not begin until BTC hits $130,900.
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A $4.4 billion increase in BTC’s realized cap confirms concrete investment activity rather than a speculation-driven rally.
Bitcoin (BTC) reached $113,800 on Thursday as a significant uptick in demand from accumulation addresses was observed. According to data from CryptoQuant, these addresses collectively held 248,000 BTC on Wednesday, marking a new yearly high in accumulation activity. The 30-day demand of these addresses is up 71%, rising from 148,000 BTC on June 22.
This level of demand hasn’t been seen since Dec. 20, when Bitcoin was trading at $97,000 and accumulator addresses hit an all-time high of 278,000 BTC. The renewed accumulation rate at even higher price levels indicates that investors’ conviction has not wavered.
Bitcoin’s demand momentum supports this outlook, which has sharply rebounded after matching 2024 lows from Q4. While the cumulative demand (which includes bearish selling) remains negative, the metric’s swift recovery highlights that buyers are beginning to assert control. This dynamic suggests a strong foundational interest in spot BTC, as strategic accumulation outweighs recent short-term selling.
Related: Bitcoin treasury companies acquire record 159,107 BTC in Q2
Bitcoin traders expected to delay taking profit
While Bitcoin’s price discovery phase is anticipated to continue, market analyst Axel Adler Jr. identified a potential profit-taking price level. Adler Jr. noted that when the Market Value to Realized Value (MVRV) reaches 2.75, it typically signals the first central inflection point for distribution. The MVRV indicator compares the current market cap to the aggregated cost basis of all BTC in circulation.
Based on current data, this threshold corresponds to a $130,900 Bitcoin price. While this level may attract some selling, it’s still 17% higher than current prices, suggesting the rally may have more room to run.
Glassnode outlined an increase in realized cap and explained that it reflects actual capital inflows. Unlike market cap, realized cap only increases when coins move at higher prices. The $4.4 billion jump as BTC broke above $113,000 signals vigorous investor activity, not just a speculative markup.
Milk Road co-founder Kyle Reidhead set a higher $150,000 target for Bitcoin, citing a bullish cup and handle formation observed last month. “See you at $150K,” he posted on X shortly after BTC hit $112,000, underscoring growing confidence in further upside before any meaningful correction.
Related: Bitcoiners underprepared for possible $133K price tag in September
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.