- According to Glassnode’s latest on-chain report, experienced crypto investors are accumulating approximately 50,000 Bitcoin (BTC) per month, valued at around $1.35 billion.
- Despite significant price fluctuations in Bitcoin this year, Glassnode’s latest report indicates that long-term holders or “hodlers” are steadfast.
- Glassnode states that the market is currently in a situation of low and shrinking liquidity, similar to bear markets in 2014-15 and 2018-19, which has lasted for 535 days.
While altcoins face challenging times, long-term Bitcoin investors continue their monthly BTC accumulation. How many Bitcoins are being acquired each month?
Long-Term Bitcoin Investors Continue Accumulating
According to blockchain analytics firm Glassnode’s latest on-chain report, experienced crypto investors are accumulating approximately 50,000 Bitcoin (BTC) per month, valued at around $1.35 billion. This supply shortage is emerging due to the broader digital asset market being “exceptionally stagnant” both on-chain and across exchanges.
Despite significant price fluctuations in Bitcoin this year, Glassnode’s latest report indicates that long-term holders or “hodler” cohort is unwavering. Glassnode’s Hodler Net Position Change metric reveals that investors who have held their coins for at least 155 days are withdrawing 50,000 BTC from exchanges each month. This data indicates that both the supply is tightening and experienced investors are avoiding trading under current market conditions.
Glassnode states that the market is currently in a situation of low and shrinking liquidity, similar to bear markets in 2014-15 and 2018-19, which has lasted for 535 days. Both the on-chain value transferred and new capital inflow to the Bitcoin network are at multi-year lows.
Exchange activity also demonstrates widespread indifference among investors. The 30-day average total exchange trading volume is currently around $1.5 billion, a 75.5% drop from the all-time high in May 2021. Glassnode’s researchers state:
“The volume of profit and loss realized with coins sent to exchange addresses has also been completely wiped clean of the 2021-22 cycle and both measures are currently at the lowest levels seen since 2020.”
Defining the Altcoin Season Period
To define periods of explosive altcoin speculation, Glassnode introduced a model that assesses risky and risk-averse environments through the lens of capital rotation. Despite the volatility in altcoin prices, this framework shows that capital is not flowing from Bitcoin to Ethereum and stablecoins in increasing proportions, which is considered one of the signs of the “altseason frenzy.”
Glassnode’s report explains this model in detail: “This model is achieved by looking for a positive and increasing 30-day change in the ETH Realized Cap and Stablecoin Total Supply (i.e., a positive second derivative). This model simulates the cascade effect of capital moving from larger to smaller cap assets.”
Despite the wild price fluctuations in altcoins, Glassnode suggests that these fluctuations are more a result of current low liquidity than an actual risky period. As of now, hodlers are ready to see more supply squeeze while they await the anticipated bull run.
