Amidst the current market downturn, there is a noticeable shift towards HODLing and accumulation among investors in the digital asset market. Glassnode’s recent analysis sheds light on this trend, indicating a growing inclination towards holding onto assets rather than selling in response to volatile market conditions.
Following Bitcoin’s all-time high in March, there was a period of supply distribution across wallets of various sizes. However, in recent weeks, this trend has started to reverse, particularly among the largest wallets associated with ETFs. This group of investors appears to be transitioning back to a phase of accumulation, as highlighted by Glassnode’s Accumulation Trend Score (ATS) reaching its maximum value of 1.0.
Long-Term Holders (LTH) significantly divested during the period leading to the all-time high but have now shifted back to HODLing. Glassnode’s data shows a substantial volume of +374k BTC moving into LTH status over the past three months, emphasizing the shift towards holding onto assets rather than selling.
The Active Investor’s Cost-Basis serves as a crucial threshold for determining investor sentiment in the market. Glassnode notes that the market has held steady around this point, suggesting some strength and optimism among investors about potential market improvement. If buying interest increases and the Adjusted Spot CVD metric turns positive again, it could indicate a potential rebound in demand for digital assets.
Overall, the current market conditions have sparked a renewed focus on HODLing and accumulation among investors, as evidenced by Glassnode’s data and analysis. This shift in behavior towards holding onto assets rather than selling indicates a growing confidence in the long-term value and potential growth of digital assets in the market.
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