A recent on-chain analysis from the analytics firm Glassnode indicates a revival in the holding behavior—popularly termed ‘HODLing’—among Bitcoin (BTC) stakeholders, particularly long-term holders.
This trend emerges amid ongoing market fluctuations. Glassnode’s data suggests that after a prolonged period of distribution pressure, the focus has shifted back toward accumulation.
Renewed Commitment Among Bitcoin Holders Amid Market Fluctuations
According to Glassnode’s latest findings, the Bitcoin market is showing initial signs of moving away from the selling pressure towards a renewed emphasis on accumulation. The week’s on-chain report highlights that the Accumulation Trend Score (ATS), a very crucial metric for tracking market behavior, has hit an all-time high of 1.0, signifying strong accumulation activity.
“The past few weeks are starting to show signs of a reversal, especially among the largest wallets often linked to ETFs,” states Glassnode’s report. “These substantial wallets seem to be entering a phase of accumulation once again.”
The report also highlights the actions of long-term holders (LTHs) who had significantly reduced their holdings during the surge to Bitcoin’s all-time high (ATH) earlier this year. Nevertheless, in the past three months, around 374,000 BTC have shifted back to long-term holding, as per Glassnode’s analysis.
These statistics indicate that despite recent price fluctuations, LTHs are choosing to retain their holdings, fostering a more stable market environment. Furthermore, Glassnode’s on-chain data reveals that the Long-Term Holder Supply is trending upward, stating:
“Recently, this indicator has seen a positive turnaround, suggesting that the LTH group is opting to keep their coins.”
Additionally, Glassnode’s review of technical market indicators implies that the ongoing accumulation trend could lead to decreased volatility, as long-term holders demonstrate patience and steadfastness. The report indicates that the Sell-Side Risk Ratio for LTHs remains low compared to prior market cycles, signifying that these investors are biding their time for more favorable prices before contemplating significant sales.
This, along with the market’s ability to hold support near critical levels, reflects a tempered optimism among long-term investors regarding BTC’s prospective growth. On August 13, Bitcoin saw a 2.3% increase, reaching a high of $61,600 per unit by 1 p.m. EDT. Over the preceding week, BTC climbed more than 7% against the U.S. dollar.
Glassnode’s latest insights are in line with observations from cryptoquant.com, as noted by founder and CEO Ki Young Ju, who pointed out a notable trend: a vast amount of Bitcoin has transitioned into long-term holder wallets in the past month.
Bitcoin Price Eyes $61K Following Positive PPI Data, Toncoin Surges 7%
Bitcoin’s price has surged nearly $2,000 since the previous day, largely influenced by better-than-expected core PPI figures in the United States. Several altcoins have also seen remarkable gains during this period, with TON rising over 7% to exceed $6.7.
BTC Aims for $61K
The leading cryptocurrency concluded the last business week on a high note, nearing $63,000 on Friday—a rebound of over $13,000 since its Monday dip to just under $50,000, a six-month low. However, bears quickly seized the opportunity, causing BTC to struggle in maintaining its upward momentum. Following some fluctuations over the weekend, Bitcoin dipped below $58,000 on Monday.
After further market activity, Bitcoin started to appreciate on Tuesday afternoon after the U.S. released the core PPI numbers for July, which came in lower than anticipated. As Michael James, managing director of equity trading at Wedbush Securities, stated, this suggests the Federal Reserve may consider interest rate cuts “sooner rather than later.”
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