Analysis by Glassnode shows a return to Bitcoin accumulation behavior among investors, demonstrated by a rise in the Accumulation Trend Score. This metric evaluates whether investors have been actively acquiring Bitcoin in the past month by studying changes in wallet balances and the magnitude of investors’ holdings.
An Accumulation Trend Score nearing 1 suggests significant network entities or numerous smaller holders engaging in accumulation. Conversely, a score closer to 0 indicates distribution or a lack of accumulation by major market participants.
Recent data points to a shift in Bitcoin Accumulation Trend Scores from deep red to blue, marking a shift from distribution to accumulation after a period of consolidation following record-high prices. Notably, larger investor groups, like those holding 10,000+ BTC, are displaying notably aggressive accumulation behaviors, reflecting positive sentiment among entities such as spot ETFs.
Significantly, the Accumulation Trend Score for the overall market has surged to 1, indicating robust accumulation by the biggest whale entities in the industry. This current level of accumulation mirrors that seen during the previous surge to all-time highs, potentially signaling a bullish trend in Bitcoin values.
At present, Bitcoin is priced around $61,300, with a more than 7% rise over the past week. The recent price increase aligns with the observed renewed accumulation activity among investors.
In summary, Glassnode’s report highlights the importance of the renewed Bitcoin accumulation trend among investors, potentially setting the stage for positive price momentum in the crypto market.
