Amidst the current downturn in the market cycle, investor sentiment in the digital asset market remains uncertain. Glassnode’s analysis reveals clear signs of a resurgence in HODLing and accumulation despite the prevailing market conditions.
Following bitcoin’s all-time high in March, there was a phase of supply distribution across wallets of varying sizes. However, in recent weeks, there has been a noticeable reversal of this trend, particularly among the largest wallets linked to ETFs. This transition indicates a return to accumulation behavior among this cohort of investors.
Glassnode’s Accumulation Trend Score (ATS), which evaluates a weighted balance change in the market, also indicates a shift towards accumulation-focused behavior. The ATS has reached its maximum value of 1.0, signifying significant accumulation over the past month.
Long-Term Holders (LTH) had previously divested during the market’s all-time high but have since returned to HODLing. With a migration of +374k BTC into LTH status over the last three months, there is a notable shift towards holding onto coins rather than selling them.
The Active Investor’s Cost-Basis is a critical threshold in determining investor sentiment regarding the market. Glassnode notes that the market has remained steady around this point, indicating some strength and an expectation of market improvement in the near future. If buying interest increases and the Adjusted Spot CVD metric turns positive, it could signal a potential rebound in demand.
The digital asset market is witnessing a resurgence in HODLing and accumulation behavior among investors. Despite the uncertainty stemming from the current market downturn, there are promising signs of a shift towards holding onto assets and accumulating positions. Glassnode’s analysis provides valuable insights into investor sentiment and market dynamics, highlighting the growing inclination towards long-term investment strategies in the digital asset space.
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