Bitcoin "buy and hold" address holdings have reached an all-time high, is BTC brewing the next big market movement?

On-chain data shows that a group of Bitcoin (BTC) long-term holders known as “accumulator addresses” are quietly rewriting history. These addresses have a unique characteristic of only buying and not selling. As of September 5, the amount of BTC held by such addresses has surpassed 266,000 coins, setting a new historical record and further strengthening the narrative of Bitcoin as a long-term store of value.

Accumulator Address: The Best Proof of On-Chain Faith

Definition: At least two specific amounts of BTC have been credited, and there have never been any sell transactions.

Latest data (CryptoQuant): Total holdings exceed 266,000 BTC.

Market Significance:

1. Reflects investors' confidence in the long-term value of BTC.

2. Similar to the behavior of companies incorporating BTC into their balance sheets.

3. The view supporting that “Bitcoin is digital gold”

Galaxy Digital's Warning: The Fee Market is Disappearing

Despite high confidence in long-term holding, Galaxy Digital raises structural concerns:

Transaction fee market shrinks: After the 2024 halving and the decline of the Ordinals/NFT craze, competition for block space weakens.

Data shows: Nearly 15% of blocks were cleared at extremely low cost.

Potential Risks:

1. Decline in miner incentives

2. Block subsidies are reduced, and network security is under threat.

If there is a lack of new on-chain demand, Bitcoin may become a “settlement layer without a real settlement mechanism.”

Technical Analysis: Compression Phase Nearing Conclusion

According to Bitcoin Vector analysis:

Key range: BTC is trying to recover the range low of $112,000–$121,000.

Important support: $113,600 and $115,600

Bullish Conditions:

If the price consolidates above the support level, it will confirm a bullish reversal.

After the momentum warms up, BTC is expected to return to the bullish territory.

Market Outlook

Bullish Factors

1. The accumulator Address holdings have reached a new high, with stable long-term buying pressure.

2. If it breaks through the key level of 112,000 USD, it may trigger a new wave of upward momentum.

Risk Factors

1. The transaction fee market is weak, and miner income is declining.

2. If on-chain demand cannot recover, long-term security and network vitality will be challenged.

Conclusion

The holdings of the Bitcoin accumulator address have reached a historical high, injecting long-term bullish confidence into the market. However, Galaxy Digital's warning reminds us that the sustainability of the network still relies on the recovery of the fee market and on-chain demand. In the short term, if BTC can hold the support at $113,600 and break through the resistance in the $112,000 range, it is expected to usher in a new wave of bullish momentum.