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Bitcoin Investors Favor Accumulation Over Distribution Amid Price Surge: Glassnode
According to recent reports from market research firm Glassnode, Bitcoin (BTC) investors have opted for accumulation over distribution in the past two months. This trend has persisted even as the asset’s price has surged. Despite reaching new highs this week, there is still a supply crunch, indicating that investors are more likely to accumulate than distribute their holdings.
Glassnode’s analysis suggests that investors believe current prices offer relatively compelling value. The firm discovered that the Accumulation Trend Score, which measures investor sentiment and accumulation, rose significantly after Bitcoin broke past $100,000. As BTC continued its upward trajectory, this accumulation pressure persisted. Even as the asset consolidated above its all-time high (ATH) of over $111,000 in May, investors remained committed to accumulating.
The data highlights that the accumulation metric has hovered above its historical average since then. This signals that investors increasingly view the current market environment as more favorable, despite prices being similar to those during a previous distribution phase late last year.
Long-term Holder Supply Grows
Furthermore, long-term holders (LTHs) have been steadily increasing their balances at a pace faster than new BTC supply. Glassnode observed that 30-day growth in LTH supply outpaced monthly issuance by miners. The data highlights a stark contrast between the miner-supplied 13,400 BTC per month and the rate at which LTHs are accumulating: an astonishing 19,300 BTC per month.
Additionally, even investors holding less than 100 BTC (classified as Shrimps, Crabs, and Fishes) have begun to follow this accumulation trend. These groups, representing both retail participants and high-net-worth individuals, are now more focused on increasing their holdings rather than distributing them.
This surge in accumulation among LTHs has tightened supply-side conditions, with these investors absorbing newly issued BTC at an unprecedented rate. As such, market analysts believe that these investors have become price-insensitive, unwilling to offload their assets at current prices and instead waiting for more significant market action before selling.
In the short term, on-chain and derivatives market indicators are signaling elevated volatility in the coming weeks. Glassnode notes that coiling and compression of prices across multiple timeframes support this observation.
Source: cryptopotato.com
