Bitcoin holders stack sats as price hovers above $60,000: Glassnode

While the market is still digesting Bitcoin’s drop to $49,000 last week, there are signs that users are starting to build up their Bitcoin, Glassnode said in a Blog post on Tuesday.

Bitcoin faced several headwinds in August, including geopolitical tensions in the Middle East, recession fears in the U.S., uncertainty surrounding the Japanese yen, and a general risk-off sentiment that was most evident at the beginning of the month.

“Investors remain cautious ahead of this week’s US Consumer Price Index release,” QCP Capital wrote in a brief note on Tuesday. “They will be watching the inflation numbers closely to see if the Fed will cut rates by 50 or 25 basis points in September. The odds are now equal.”

While investor tensions in the broader markets have eased somewhat and major indices saw a general upswing on Tuesday, Bitcoin and crypto prices continue to decline.

The asset is up 1.6% on the day to just over $60,600, CoinGecko Data It is still up 37% year-on-year, but is about 18% below its all-time high of $73,000 hit on March 14.

Last week’s activity was sent Shock waves in all markets following Japan’s decision to end its de facto zero interest rate regime. Bitcoin holders have been accumulating their holdings in the meantime.

The Accumulation Trend Score, an on-chain metric that assesses users’ gradual acquisition of assets, has reached its highest value above 1, indicating significant activity over the past month, Glassnode said.

The shift toward holding is further supported by data showing that long-term holders who previously sold large amounts during the price peak in March are now increasing their Bitcoin holdings.

Over the past three months, more than 374,000 BTC have been transferred to long-term hold status.

“From this we can conclude that investors’ propensity to hold on to their coins is now a greater force relative to their issuance pressure,” Glassnode said.

Despite the recent heavy selling last week, the Bitcoin price is still above what most active investors paid on average for their coins, a level that is reportedly a critical threshold that separates bullish from pessimistic sentiment.

The market’s ability to find support at this level indicates underlying strength and suggests that investors are still optimistic about Bitcoin’s short- to medium-term prospects, Glassnode noted.