Analytical firm Glassnode found in a new report that Bitcoin [BTC] The market remains highly volatile. Heavily impacted by the downturn in the broader financial markets, King Coin looks uncertain in the near term. Conversely, the market tends to be persistent and follows well-developed trends over the long term.
In its assessment, Glassnode considered how different groups of BTC holders behaved differently as the entire market navigates through a bear market. The on-chain intelligence firm also looked at the disparity in user behavior between HODLers and short-term holders.
The report also looked at different wallet sizes to understand how these categories of holders have reacted to situations of uncertainty.
bitcoin accumulation trend score
According to Glassnode the last 12 months have been marked by four distinct phases. First, there was a period of BTC accumulation following the all-time high of November 2021. This was followed by a period of coin distribution due to a “slow, but continuous decline in price”.
Despite the market crash due to the LUNA collapse, investors started hoarding BTC. After this period of accumulation, the final stage, in which we are currently, seeks exit liquidity through coin distribution and profit taking to investors.
Furthermore, according to statistics, this current stage is formed by holders of over 10,000 BTC (whales) who have “aggressively” distributed the coins, “capitalizing on any exit liquidity that may exist amid global market uncertainty.” ”
A look at the whale-exchange net position change metric confirms this.
But investors are accumulating
When analyzing the behavior of BTC holders over the long term, Glassnode looked at livelihood metrics. According to Glassnode Academy, the metric provides insight into changes in macro HODLing behavior. In addition, long-term holder accumulation or spending trends are identified.
When the metric goes lower, it means that a higher proportion of the coin supply is idle, and hodlers continue to HODL. When it is located in an uptrend, it means that long term HODLers have started to spend their old coins.
According to Glassnode,
“Vivatality is currently in a strong downtrend, and has broken below the triple peaks of the post-2018 bear market. This phenomenon suggests that Coin Days is accumulating much faster than it is being destroyed by supply. and it coincides with a HODLing dominant regime.”
Additionally, a change in HODLer’s net position showed that BTC macro HODLing behavior is currently at a multi-year high of around 70,000 BTC per month since November 2020.
According to Glassnode, this is in line with long-term bullish confidence in the current decline in the price of King Coin.
With the state of the metrics, BTC hodlers remain “steadfast in their faith” in the long term. The recent drop in the price of BTC is mainly driven by short-term holders.