Long-term Bitcoin (BTC) holders are suddenly rapidly accumulating massive amounts of the top digital asset by market cap, according to blockchain analytics platform Glassnode.
In a new analysis, Glassnode reports that Long-Term Holders (LTH), or addresses that hold coins for at least 155 days, have accumulated more than $22 billion worth of Bitcoin in the past three months.
“This observation is echoed across Long-Term Holders (LTH), who heavily divested during the run-up to the ATH (all-time high). This cohort have now returned to a preference for HODLing, with a total volume of 374,000-plus BTC migrating into LTH status over the last three months. From this, we can infer that the propensity for investors to hold onto their coins is now a larger force relative to their spending pressures.”
Glassnode also says that a key metric suggests accumulation of Bitcoin is now an emerging market trend.
“The Accumulation Trend Score (ATS) metric assesses a weighted balance change across the market. This metric also suggests there is a shift back towards accumulation dominant behavior. The aforementioned shift towards accumulation has contributed to the ATS recording its highest possible value of 1.0, suggesting significant accumulation throughout the last month.”
According to Glassnode, the LTH data suggests that Bitcoin’s market fundamentals are strong and a breakout to new all-time highs (ATHs) may be coming.
“Despite challenging and choppy market conditions, long-term Bitcoin holders remain remarkably steadfast in their conviction, with evidence they are ramping up accumulation behavior. An elevated percentage of Bitcoin network wealth is held by this investor cohort relative to previous cycle ATH breaks, which suggests there is a degree of investor patience on display, and waiting for higher prices. Additionally, the lack of panic selling amongst this cohort in lieu of the largest price contraction of the cycle highlights a resilience of their aggregate conviction.”
Bitcoin is trading for $58,979 at time of writing, down nearly 3% in the last 24 hours.
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