In the midst of the current market downturn, investor sentiment in the digital asset market remains uncertain. However, insights from Glassnode reveal a shift towards HODLing and accumulation among cryptocurrency investors. The data indicates a trend where investors are increasingly holding onto their assets rather than engaging in selling.
Glassnode’s Accumulation Trend Score (ATS) metric, which evaluates the weighted balance change across the market, has shown a notable increase in accumulation-focused behavior. The ATS has reached its maximum value of 1.0, suggesting significant accumulation activity over the past month. This shift in behavior is particularly evident among Long-Term Holders (LTH), who have seen a migration of +374k BTC into LTH status over the last three months.
The analysis also highlights a transition among larger wallets, often associated with Exchange-Traded Funds (ETFs), towards accumulation. This shift in investor behavior indicates a growing preference for holding onto assets rather than selling. Glassnode notes that this trend is a reversal from the supply distribution phase observed following bitcoin’s all-time high in March.
Active Investor’s Cost-Basis and Market Expectations
The Active Investor’s Cost-Basis serves as a critical threshold in determining investor sentiment towards the market. Glassnode’s data suggests that the market has maintained stability around this point, indicating a degree of strength. Investors appear to be optimistic about the market’s potential for improvement in the near future. Moreover, a positive turn in the Adjusted Spot CVD metric could signal increased buying interest and a potential rebound in demand.
The cryptocurrency market is witnessing a shift towards HODLing and accumulation as investors navigate the current downturn. Glassnode’s analysis highlights a growing inclination among investors to hold onto their assets, particularly among Long-Term Holders. The Accumulation Trend Score reaching its maximum value further demonstrates this shift in behavior. Despite the uncertainty in market sentiment, there are signs of optimism and potential for a rebound in demand based on investor behavior and market dynamics.