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Bitcoin investors exhibit increased focus on accumulation and retention, according to Glassnode.
According to Glassnode’s most recent on-chain report, Bitcoin (BTC) investors are demonstrating a revived inclination towards holding and accumulating.
After a phase of supply distribution following Bitcoin’s peak in March, the market is now showing initial signs of a shift back towards accumulation.
Large wallets, typically linked to exchange-traded funds (ETFs), seem to be at the forefront of this movement. The Accumulation Trend Score (ATS) metric, which evaluates weighted balance fluctuations across the market, has achieved its maximum value of 1.0, signifying considerable accumulation over the past month.
Long-Term holders (LTH) have also altered their strategies. Following a period of selling during the ascent to the all-time high, this group has reverted to a preference for holding. In the last three months, a total of 374,000 BTC has transitioned into LTH status.
The 7-day change in LTH supply, a metric utilized to evaluate the rates of change in their overall balance, has returned to a positive state. This suggests that the LTH group is favoring the retention of their coins.
Importantly, despite significant distribution from April to July, the spot price has consistently traded above the Active Investor Cost Basis of $51,300. This metric reflects the average price that investors pay to acquire their BTC.
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As noted by Glassnode:
“Since the market managed to find support near this level speaks to a degree of underlying strength, suggesting investors are generally still anticipating positive market momentum in the short-to-medium-term.”
The transition towards accumulation occurs amidst market uncertainty following a recent sell-off. However, the data indicates that the tendency for investors to retain their coins is now a more dominant force compared to their spending pressures.
Beginning the week with inflows
This week commenced with spot Bitcoin ETFs experiencing inflows after concluding last Friday with nearly $90 million less in assets under management (AUM), as per Farside Investors’ data.
Rather than BlackRock’s IBIT leading in inflows, ARK 21Shares’ ARKB recorded the highest inflow amount on Aug. 12, exceeding $35 million. IBIT contributed an additional $13.4 million, while Grayscale’s GBTC saw a decline of nearly $12 million in AUM.
Conversely, Grayscale’s “mini trust” with the BTC ticker attracted $7.9 million in cash.
The post Bitcoin investors show renewed interest in accumulation and holding – Glassnode appeared first on CryptoSlate.
