According to the latest report from the analytics firm Glassnode, Bitcoin holders are increasingly returning to the strategy of HODLing, meaning they are choosing to hold onto their Bitcoin rather than selling it. This marks a shift after several months of significant pressure to distribute assets. The market recently experienced the largest downturn of the current cycle, but it appears to be in a recovery phase.
The report highlights that despite ongoing uncertainty among digital asset investors, data points to a renewed trend toward HODLing and accumulation. Last week, the cryptocurrency market faced another wave of sell-offs but is now showing signs of resilience. As is common during such periods, investor sentiment is marked by high levels of indecision. However, Glassnode analysts observe that, when analyzing on-chain data in response to these market conditions, a clear trend is emerging—investors are favoring HODLing.
Back in March of this year, Bitcoin hit a historic high of $73,737. Since then, the market has seen widespread distribution, with wallets of all sizes participating in the sell-off. However, in recent weeks, analysts have detected the "first signs" of a reversal in this trend. This shift is particularly evident among larger wallets, often associated with exchange-traded funds (ETFs). Glassnode's report notes, "These large wallets appear to have returned to an accumulation mode."
One metric that supports this conclusion is the Accumulation Trend Score (ATS), which measures weighted changes in Bitcoin balances across the market. The ATS has reached its highest possible value, indicating significant accumulation over the past month. Long-term holders (LTHs), who previously disinvested as Bitcoin approached its all-time highs, are now returning to a strategy of accumulation. Over the past three months, 374,000 BTC have been added to long-term holdings.
Glassnode analysts conclude that investors’ preference for retaining their Bitcoin now outweighs selling pressure. Recent months of price stagnation have contributed to this shift, stabilizing the wealth of long-term holders and gradually increasing their share of the total supply. This wealth remains historically elevated compared to previous bull cycles.
Additionally, even in sideways or downward markets, LTHs have shown a declining willingness to part with their coins at lower prices. This steadfastness suggests that the current base of Bitcoin holders is more resilient and patient than in previous cycles. "Despite the challenging and uncertain market conditions, long-term Bitcoin holders are showing remarkable conviction, with evidence of increased accumulation behavior," the report adds.
Glassnode also highlights the Sell-Side Risk metric for LTHs, which remains lower than during previous market peaks. This suggests that the amount of realized profit among long-term holders is relatively small compared to past market cycles. However, there is still potential for selling pressure from this group if Bitcoin's price appreciates further, as many LTHs are likely waiting for higher valuations.
On August 15th, Bitcoin's price fell below the $60,000 mark once again. According to CoinMarketCap, Bitcoin was trading at $59,012.92 at the time of writing, reflecting a 2.6% decrease over the past 24 hours. Over the last week, the price had increased by 1.45%, while it had dropped about 6% over the past month. Despite this recent decline, Bitcoin has surged over 101% in the past year, even though it is currently down 17.5% from its all-time high in March.