These Bitcoin (BTC) investors resume accumulation after a 5-month hiatus: Glassnode

According to a recent Glassnode report, long-term Bitcoin holders have resumed their accumulation.

This is the first time this has happened since December 2023 and follows a period in which several months were sold.

Local ETFs drive market resurgence

“Residing near its all-time high, Bitcoin continues to consolidate, with long-term holders starting to re-hoard coins for the first time since December 2023,” the report states.

Analysts noted that spending pressure from these holders has eased over the past week, indicating a return to accumulation patterns and suggesting that volatility may be needed to trigger any new wave of selling.

The report also cited several market indicators that suggest a resurgence in buying demand. Last week, US spot Bitcoin ETFs saw an average daily net inflow of $242 million.

“Taking into account the natural daily selling pressure from miners since the halving of $32 million per day, ETF buying pressure is nearly eight times greater, highlighting the size and ‘scale of the ETF’s impact,’ the analysts noted.

This trend suggests that the bullish trend seen in 2023-24 may be primarily driven by spot markets, as evidenced by the launch and subsequent inflows into US spot ETFs.

The report notes that this renewed interest has led to immediate buying activity, resulting in significant price movements across all timeframes. For the first time since late 2021, BTC experienced price changes of more than 20%, showing the market’s response to capital inflows via ETFs.

Analysts also pointed to the ETH/BTC trading pair, which could indicate a more promising outlook. “Given the considerable impact and influence spot ETFs have had on Bitcoin since the turn of the year, the ETH/BTC trading pair may be showing early signs of a more promising path,” they stated.

Bitcoin earnings in recent months

Glassnode also noted that bitcoin price movements have been more subtle over the past three months than in previous bull cycles. In this period, BTC achieved weekly, monthly and quarterly gains of more than 3.3%, 7.4% and 25.6%, respectively, in just five of the last 90 days.

“In previous cycles, this count reached between 18 and 26 days, suggesting that the current market may be a bit more measured relative to historical bull markets,” the analysts added.

Glassnode also mentioned that Ethereum has underperformed compared to other leading crypto assets over the past two years, resulting in a weaker ETH/BTC ratio. Despite this, analysts believe that the SEC’s approval of US spot Ethereum ETFs has leveled the playing field between Bitcoin and Ethereum.

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