Bitcoin (BTC) investors are showing a renewed preference for holding and accumulating, according to Glassnode’s latest on-chain report.
Following a period of supply distribution after Bitcoin’s all-time high in March, the market is now exhibiting early signs of a reversal towards accumulation.
Large wallets, often associated with exchange-traded funds (ETFs), appear to be leading this trend. The Accumulation Trend Score (ATS) metric, which assesses weighted balance changes across the market, has recorded its highest possible value of 1.0, indicating significant accumulation over the past month.
Long-Term holders (LTH) have also shifted their behavior. After divesting during the run-up to the all-time high, this group has now returned to a holding preference. Over the last three months, a total volume of 374,000 BTC has migrated into LTH status.
The 7-day change in LTH supply, a tool used to assess rates of change in their aggregate balance, has returned to positive territory. This indicates that the LTH cohort is expressing a preference for holding onto their coins.
Notably, despite aggressive distribution from April to July, the spot price has continued to trade above the Active Investor Cost Basis of $51,300. This metric measures the average price that investors pay to buy their BTC.
As highlighted by Glassnode:
“Since the market managed to find support near this level speaks to a degree of underlying strength, suggesting investors are generally still anticipating positive market momentum in the short-to-medium-term.”
The shift towards accumulation comes amid market uncertainty following a recent sell-off. However, the data suggests that the propensity for investors to hold onto their coins is now a larger force relative to their spending pressures.
Starting the week with inflows
This week started with spot Bitcoin ETFs recording inflows after closing last Friday with nearly $90 million less in assets under management (AUM), according to Farside Investors’ data.
Instead of BlackRock’s IBIT leading in inflows, ARK 21Shares’ ARKB registered the highest amount of inflows on Aug. 12, surpassing $35 million. IBIT added to the amount with $13.4, while Grayscale’s GBTC lost nearly $12 million in AUM.
On the other hand, Grayscale’s “mini trust” with the BTC ticker captured $7.9 million in cash.
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