In the midst of the current downturn in the market, investor sentiment in the digital asset market is uncertain. However, according to Glassnode, there are clear signs of a resurgence in HODLing and accumulation. The analysis of the on-chain investor response to the volatile market conditions indicates a growing inclination towards HODLing.
Following bitcoin’s all-time high in March, there was a prolonged phase of supply distribution across wallets of various sizes. However, in recent weeks, this trend has started to reverse, particularly among the largest wallets associated with ETFs. These investors are transitioning back to a phase of accumulation, as indicated by Glassnode’s Accumulation Trend Score (ATS) reaching its maximum value of 1.0.
Long-Term Holders (LTH) had previously divested heavily leading up to the all-time high. However, they have now returned to HODLing, with a significant amount of BTC migrating into LTH status over the past three months. This shift suggests that investors are more inclined to hold onto their coins rather than spend them.
The Active Investor’s Cost-Basis is a crucial threshold that helps determine whether investors are feeling bullish or bearish about the market. Despite the current market conditions, Glassnode notes that the market has held steady around this point, indicating some strength and a belief among investors that the market will improve in the near future. The potential rebound in demand could be signaled by an improvement in buying interest and a positive turn in the Adjusted Spot CVD metric.
Overall, the data analyzed by Glassnode reveals a shift in investor sentiment towards HODLing and accumulation in the digital asset market. Despite the uncertainty in the market, there are signs of optimism and belief among investors that the market will recover in the future.
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