In the midst of the largest downturn of the market cycle, investor sentiment in the digital asset market remains uncertain. Glassnode’s analysis points towards clear signs of a resurgence in HODLing and accumulation among investors. Despite the volatility in the market, there seems to be a growing inclination towards holding onto assets rather than selling.
Following bitcoin’s all-time high in March, the market experienced a phase of supply distribution across wallets of varying sizes. However, this trend has begun to reverse in recent weeks, particularly among the largest wallets associated with ETFs. It appears that this cohort of investors is transitioning back to a phase of accumulation, as indicated by Glassnode’s Accumulation Trend Score (ATS) metric reaching its maximum value of 1.0.
Long-Term Holders (LTH) had previously divested during the peak leading to the all-time high, but they have now returned to HODLing. There has been a significant migration of +374k BTC into LTH status over the last three months, suggesting that investors are now more inclined to hold onto their coins rather than spend them. This shift in behavior towards holding reflects a larger force relative to spending pressures.
The Active Investor’s Cost-Basis is a critical threshold that indicates whether investors are feeling bullish or bearish about the market. Glassnode notes that the market has held steady around this point, implying some strength and the expectation of improvement in the near future. If buying interest increases and the Adjusted Spot CVD metric turns positive again, it could signify a potential rebound in demand.
Despite the overall uncertainty and volatility in the digital asset market, there are clear indicators of a resurgence in HODLing and accumulation behavior among investors. The shift towards accumulation, particularly among large wallets and Long-Term Holders, suggests a growing confidence in the long-term value of digital assets. As investors continue to hold onto their coins and express a preference for accumulation, it will be interesting to see how these trends evolve in response to market conditions.