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Long-term bitcoin holders reaccumulating for first time since last December: Glassnode

Long-term bitcoin holders reaccumulating for first time since last December: Glassnode

The BlockThe Block2024/05/29 10:14
By:Brian McGleenon

According to a Glassnode report, selling pressure from long-term bitcoin holders has cooled significantly — and such investors are returning to accumulation patterns.Analysts also noted that bitcoin’s price action over the past three months has been more muted than previous bull cycles.

Long-term bitcoin holders are starting to re-accumulate for the first time since December 2023 after multiple months of selling, according to Glassnode data

"Residing just shy of its all-time high, bitcoin continues to consolidate, with long-term holders beginning to re-accumulate coins for the first time since December 2023," a report from the market intelligence firm said today.

The analysts noted that spending pressure from long-term holders has cooled off significantly in the past week, with investors returning to accumulation patterns — suggesting that volatility is required to motivate any new wave of sell-offs.

The report also identified market indicators that suggest a return of buy-side demand. Glassnode illustrated this by saying that, last week, U.S.-based spot bitcoin ETFs experienced a net inflow of $242 million per day. "Considering the natural daily sell pressure by miners since the halving of $32 million per day, ETF buy pressure is almost eight times larger, which highlights the size and scale of the ETF impact," the analyst added.

A more tempered bull cycle

Notably, Glassnode observed that bitcoin's price action over the past three months has been more muted than prior bull cycles. According to Glassnode, over the past three months, bitcoin has recorded weekly, monthly and quarterly gains of over 3.3%, 7.4%,and 25.6%, respectively, on only five out of the last 90 days.

"In prior cycles, this count reached between 18 and 26 days, which suggests the current market may be somewhat more measured relative to historical bull markets," the analysts added.

Bitcoin BTC -1.20% 's price has decreased by 0.71% in the past 24 hours and was changing hands for $67,610 at 5:39 a.m. ET, according to The Block’s Price Page . 

The GM 30 Index , representing a selection of the top 30 cryptocurrencies, increased by 0.55% to 144.92 in the same period.

Bitcoin has ticked down 0.71% in the past 24 hours. Image: The Block.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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