After a protracted period of heavy pressure on the bitcoin price, the behavior of BTC holders has shifted towards HODL and accumulation, according to Glassnode analysts. Are we really seeing the first signs of accumulation since March?
1. What changes in the behavior of bitcoin holders have been observed since March?
Glassnode analysts note that since March 2024, there has been a period when bitcoins were actively rotating from old wallets into new ones. However, in recent weeks, this trend has begun to change. Bitcoin holders have begun to lean towards a HODL (Hold On for Dear Life) strategy and accumulation of cryptocurrency. This change is especially noticeable among large hodlers, who are likely associated with US spot bitcoin ETFs. They seem to be returning to accumulation mode after a period of sell-offs.
2. Who are the largest bitcoin hodlers and how do they influence the market?
The largest BTC hodlers are often institutional investors, including those associated with US-based spot BTC ETFs. They exert a strong impact on the market due to their large volumes. When such players start accumulating or selling bitcoin, it can give rise to noticeable market trends. Moreover, their behavior is often seen as a proxy for other market participants, as they are assumed to have access to deeper analytics and resources to make informed decisions.
3. What categories of wallets do analysts track and what does this say about the behavior of long-term investors?
Glassnode analysts pay special attention to the category of wallets that have held bitcoin for more than 155 days. These wallets are presumably owned by long-term investors.
Observations of this category reveal that:
- After a period of heavy selling since March, there is now a trend of replenishment of balances in these wallets.
- There are no signs of panic selling even amid the recent decline in the price of Bitcoin.
- Investors are displaying patience and seem to expect higher prices in the future.