Bitcoin Analysis: Extreme HODLing and Accumulation Happening Behind-the-Scenes, According to Crypto Insights Firm Glassnode
The current Bitcoin market is dominated by a particular type of investor, according to the crypto analytics firm Glassnode.
The firm reports long-term holders and accumulators likely account for the majority of the current market makeup. Bitcoin transaction counts and the number of active entities are down since the 50%-plus correction in May, which Glassnode says could be a bearish indicator.
BTC is trading at $42,944 at time of writing, down more than 10% in the past two weeks, according to CoinGecko. The largest crypto asset by market cap hit its all-time high of $64,804.72 in mid-April.
Glassnode notes that short-term holders have reached an all-time low.
“We can also see that the relative supply held by short-term holders has reached an all-time low of 20% of circulating supply. This is a rare occurrence that has historically described the late-stage accumulation periods of bear markets by the smarter money.”
Despite the reduced participation in the Bitcoin protocol, the analytics firm says certain elements of the current market makeup are unique.
“Despite relatively low on-chain activity and a number of market fractals resembling bearish conditions, there remains an undertone of extreme HOLDing and accumulation behavior. This is somewhat unique to this market cycle and is a dynamic worth keeping an eye on.”
You can read the full Glassnode report here.
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The post Bitcoin Analysis: Extreme HODLing and Accumulation Happening Behind-the-Scenes, According to Crypto Insights Firm Glassnode appeared first on The Daily Hodl.
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Author: Daily Hodl Staff
