Despite the ongoing downturn in the market, there are indications of a significant shift towards accumulation and HODLing amongst investors. Glassnode’s analysis reveals a growing inclination towards holding onto assets, particularly evident in the behavior of investors with the largest wallets linked to ETFs. This transition back to accumulation has been further supported by Glassnode’s Accumulation Trend Score (ATS) metric, which has reached its maximum value of 1.0, indicating substantial accumulation over the past month.
Long-Term Holders (LTH) Resurgence
One of the key observations made by Glassnode is the return of Long-Term Holders (LTH) to the market. Following heavy divestment leading up to the all-time high, LTHs have now shifted back to HODLing, with a significant volume of BTC migrating into LTH status over the last three months. This shift in behavior suggests that investors are now more inclined to hold onto their assets rather than selling them, indicating a more positive sentiment towards the market.
Active Investor’s Cost-Basis and Market Outlook
Glassnode highlights the importance of the Active Investor’s Cost-Basis as a crucial threshold for determining investor sentiment. The fact that the market has held steady around this point suggests that there is still strength in the market and that investors remain optimistic about future improvements. Additionally, if buying interest picks up and the Adjusted Spot CVD metric turns positive again, it could signify a potential rebound in demand in the near future.
Despite the current uncertainties and volatility in the digital asset market, there are clear signs of a shift towards accumulation and HODLing amongst investors. The resurgence of Long-Term Holders, as well as the positive movement in the Active Investor’s Cost-Basis, indicate a growing confidence in the market’s potential for improvement. As investors continue to hold onto their assets and accumulate positions, it will be interesting to see how this behavior impacts the overall market dynamics in the coming months.
