Bitcoin Holders Are Stacking Sats As Price Soars Above $60K: Glassnode

Glassnode says there are signs that users are starting to accumulate Bitcoin as the market continues to digest last week’s drop to $49,000. Blog Posts On Tuesday.

Bitcoin faced a number of headwinds in August, including geopolitical tensions in the Middle East, U.S. recession fears, uncertainty surrounding the Japanese yen, and a general risk aversion that was most acute earlier this month.

“Investors remain cautious ahead of this week’s U.S. CPI report,” QCP Capital wrote in a brief investor report. memo On Tuesday. “They will be watching the inflation numbers closely to get guidance on whether the Fed will cut rates by 50 or 25 basis points in September. The odds are now evenly split.”

While major indexes rose across the board on Tuesday, easing some of the tension among investors in the broader market, bitcoin and cryptocurrency prices remain stagnant.

The asset is up 1.6% on the day, just above $60,600. CoinGecko data It’s up 37% so far this year, but is down about 18% from its all-time high of $73,000 on March 14.

Last week’s activity was sent shock wave Bitcoin holders across all markets have been accumulating since Japan decided to effectively end its 0% interest rate regime.

According to Glassnode, the Accumulation Trend Score, an on-chain metric that evaluates users’ gradual acquisition of assets, has hit an all-time high of over 1, indicating significant activity over the past month.

Data showing that long-term holders are now increasing their Bitcoin holdings, while they sold heavily at the March price peak, supports the growing holding trend.

Over the past 3 months, over 374,000 BTC have transitioned to long-term holding status.

“This allows us to infer that investors are more inclined to hold coins than to spend,” Glassnode said.

Despite the massive selloff last week, Bitcoin’s price is still above the average price paid by most active investors for the coin, a level that is said to be a key threshold separating bullish and bearish sentiment.

According to Glassnode, the market’s ability to find support at this level indicates fundamental strength and suggests investors remain optimistic about Bitcoin’s short- to medium-term prospects.