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September 30, 2021

Bitcoin Analysis: Extreme HODLing and Accumulation Happening Behind-the-Scenes, According to Crypto Insights Firm Glassnode

By Daily Hodl Staff

The current Bitcoin market is dominated by a particular type of investor, according to the crypto analytics firm Glassnode.

The firm reports long-term holders and accumulators likely account for the majority of the current market makeup. Bitcoin transaction counts and the number of active entities are down since the 50%-plus correction in May, which Glassnode says could be a bearish indicator.

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BTC is trading at $42,944 at time of writing, down more than 10% in the past two weeks, according to CoinGecko. The largest crypto asset by market cap hit its all-time high of $64,804.72 in mid-April.

Glassnode notes that short-term holders have reached an all-time low.

“We can also see that the relative supply held by short-term holders has reached an all-time low of 20% of circulating supply. This is a rare occurrence that has historically described the late-stage accumulation periods of bear markets by the smarter money.”

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Despite the reduced participation in the Bitcoin protocol, the analytics firm says certain elements of the current market makeup are unique.

“Despite relatively low on-chain activity and a number of market fractals resembling bearish conditions, there remains an undertone of extreme HOLDing and accumulation behavior. This is somewhat unique to this market cycle and is a dynamic worth keeping an eye on.”

You can read the full Glassnode report here.

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Featured Image: Shutterstock/Jorm S