Bitcoin Clings to $67,000 as Crypto Market Cap Drops 2% to $2.4 Trillion

Crypto markets continued lower on Tuesday, with the total cryptocurrency market capitalization declining by 2% to $2.4 trillion.

Bitcoin (BTC) is hovering around $67,000, while Ethereum (ETH) dipped 2% to $2,620. Solana (SOL) rose 1.7%, while Polkadot (DOT) dipped 1%.

Traders with long positions, especially those betting on Bitcoin’s rise, were battered. Over $40 million in BTC long liquidations occurred in the last 24 hours, according to CoinGlass data. Ether long liquidations reached $45 million, with a cumulative $190 million in liquidations across the broader crypto market.

Bitcoin Accumulation Surges

The total amount of Bitcoin held in accumulation addresses has surpassed 2.9 million BTC, according to data from CryptoQuant. At the start of 2024, these addresses held just 1.5 million BTC, but in under a year, that number has nearly doubled.

“These addresses have never had a Bitcoin outflow. They hold at least 10 Bitcoins..they are not exchange addresses; they belong entirely to individual or institutional investors,” wrote CryptoQuant analyst Burak Kesmeci. “They’ve made at least two transfers and have been active at least once in the last seven years.”

In 2018, accumulation addresses held only 100,000 BTC. By the 2021 bull run, this figure had surged to 700,000. On Jan. 1, these addresses held 1.5 million BTC, and by October, that number nearly doubled to 2.9 million.

“I believe that by the end of the year, the number of Bitcoins held in these addresses will exceed 3 million,” the analyst concluded.

'Trump Trade' Boosts Bitcoin

Ryan Lee, Chief Analyst at Bitget Research, said that institutional demand is playing a critical role in supporting Bitcoin’s price. He pointed to record-high open interest in Bitcoin futures, with nearly $3 billion added in the past week.

“This bullish sentiment is further amplified by the "Trump trade," as rising expectations for Donald Trump's potential election victory—predicted at over 60%—have led institutions to boost their BTC holdings,” Lee added.

Meanwhile, U.S. stock markets were relatively unchanged. The Dow Jones Industrial Average was flat, while the S&P 500 and Nasdaq declined by 0.2% and 0.1%, respectively.