HODLers Continue to Accumulate Bitcoin Despite Volatility
A recent report from Glassnode reveals that long-term Bitcoin investors, also known as HODLers, are undeterred by the recent price volatility and are actively increasing their holdings. On-chain data shows that these investors have been accumulating over 50,000 BTC each month.
Monthly Accumulation Worth $1.35 Billion
While Bitcoin’s price has dipped below $27,000, it seems that short-term speculators are responsible for the selling pressure. Whale investors are taking advantage of this opportunity to buy more BTC at a discount rather than cashing in their profits. According to Glassnode’s HODLer Net Position Change metric, long-term holders are purchasing an average of 50,000 BTC worth $1.35 billion every month.
Increase in Long-Term Holder Supply
Glassnode’s Long-Term Holder Supply metric also reached a record high of 14.859 million BTC, indicating that 76.1% of the total circulating supply has remained untouched for the past five months. Additionally, 94.8% of the total Bitcoin supply has not moved in the past month.
Confirmation from Crypto Analyst
Crypto analyst Ali Martinez supported this data by sharing chart data from Santiment, which shows that Bitcoin whales have purchased approximately 20,000 BTC since October, amounting to around $550 million.
Optimism Among Long-Term Holders
This increased accumulation suggests that long-term holders remain confident in Bitcoin’s potential and view the current price correction as temporary. If this trend continues and sentiment among smaller traders turns towards buying, the current downtrend may be short-lived.
Potential Price Floor
Bitcoin is currently trading at $26,766 and is down by 1.31% in a 24-hour timeframe. However, if enough large players accumulate at these lower prices, it could establish a price floor and pave the way for a bullish rally.
Hot Take: Bitcoin Could Jump 50%
Crypto analyst James Straten highlights the correlation between the Grayscale Bitcoin Trust and the price of BTC, suggesting that Bitcoin could see a 50% jump. This further supports the idea that long-term holders are confident in the asset’s potential.
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