Signs of renewed accumulation are emerging among Bitcoin (BTC) holders, according to Glassnode.
Signs of renewed accumulation are emerging among Bitcoin (BTC) holders, according to Glassnode. The cryptocurrency has faced multiple challenges in August, including geopolitical tensions in the Middle East, U.S. recession fears, and an unexpected rate hike by the Bank of Japan causing the Yen carry trade to unwind.
Recent market volatility was influenced by Japan's decision to end its zero-interest-rate policy, causing ripples across financial markets. BTC fell to $49,500 on August 5, plummeting by over 15% on the day, as global markets endured a brutal selloff. However, BTC has since recovered, gaining a staggering 24% from the lows and currently trading at around $61,000. Although it's up 37% year-to-date, it remains 17% below its March high of $73,000.
Despite the uncertain market conditions, Bitcoin holders are increasingly accumulating, as indicated by the Accumulation Trend Score reaching its highest level. Long-term holders, who sold during the March peak, are now boosting their Bitcoin reserves. Over the past three months, more than 374,000 BTC have transitioned into long-term holdings, suggesting a shift towards retaining assets rather than spending.
Glassnode noted that Bitcoin's current price remains above the average cost for most active investors, a critical level that delineates bullish from bearish sentiment. This stability implies underlying market strength and optimism about Bitcoin's future prospects.
Investors are cautiously watching the upcoming U.S. CPI release for guidance on potential Fed rate cuts, with expectations evenly split between a 25 and 50 basis point reduction, according to QCP Capital.
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