Glassnode: Bitcoin Accumulations Soar Amid Market Uncertainty
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, recession fears in the U.S., and an unexpected interest rate hike by the Bank of Japan that led to the unwinding of the yen carry trade.
The recent market volatility has been influenced by Japan’s decision to end its zero-interest rate policy, sending financial markets into turmoil. BTC fell more than 15% intraday, falling to $49,500 on August 5, as global markets were hit by a brutal sell-off. However, BTC has since recovered and has gained a staggering 24% from its lows, currently trading at around $61,000. While it is up 37% since the beginning of the year, it remains 17% below its March peak of $73,000.
Despite uncertain market conditions, Bitcoin holders are increasingly accumulating, as shown by the Accumulation Propensity Score reaching its highest level. Long-term holders, who sold at the March peak, are now increasing their Bitcoin reserves. Over the past three months, more than 374,000 BTC have moved into long-term holdings, indicating a shift toward holding rather than spending.
Glassnode noted that Bitcoin’s current price remains above the average cost for most active investors, a critical level that separates bullish sentiment from bearish sentiment. This stability hints at underlying market strength and optimism about Bitcoin’s future prospects.
Investors are closely watching the upcoming US CPI data for guidance on possible rate cuts from the Fed, with expectations evenly spread between a 25 and 50 basis point cut, according to QCP Capital.