According to BlockBeats, on August 14, the encrypted data analysis platform glassnode published an article stating that “after several months of relatively heavy selling pressure, the behavior of Bitcoin holders seems to be returning to the mode of HODLing and hoarding. Spot market activity shows that there has been a clear seller pressure bias recently, and this pressure has not yet completely subsided. Compared with the historical highs in past cycles, a relatively large proportion of network wealth is currently in the hands of long-term holders. Overall, on-chain conditions show a high degree of conviction among the Bitcoin holder community.
As markets begin to recover from last week’s sell-off, there is clear uncertainty and indecision among digital asset investors. However, when analyzing the on-chain reaction of investors to these volatile market conditions, a trend of HODLing begins to emerge.
Since Bitcoin prices hit an all-time high in March, the market has experienced a broad supply distribution period, with wallets of all sizes participating. In the past few weeks, this trend has shown early signs of reversing, especially the largest wallets associated with ETFs. These large wallets appear to be returning to hoarding.
The Accumulated Trend Score (ATS) indicator evaluates changes in weighted balances in the market. The indicator also suggests that the market is shifting towards accumulation-led behavior. The aforementioned shift towards accumulation resulted in ATS recording its highest possible value of 1.0, indicating significant accumulation behavior over the past month.
Despite difficult market conditions and volatility, long-term Bitcoin investors remain steadfast in their conviction, and there is evidence that they are increasing their accumulation.
Compared to the previous cycle’s all-time highs, this group of investors holds a higher percentage of Bitcoin network wealth, suggesting that investors are showing some patience in waiting for higher prices. Additionally, despite the largest price declines in this cycle, this group of investors has not panic-sold, highlighting the resilience of their overall conviction.”
