Signs of renewed accumulation are emerging among Bitcoin (BTC) holders, according to data from Glassnode, even as the cryptocurrency faces significant challenges in August. These include geopolitical tensions in the Middle East, fears of a U.S. recession, and an unexpected interest rate hike by the Bank of Japan, which has disrupted the Yen carry trade.
Japan’s decision to end its zero-interest-rate policy triggered market-wide volatility, leading to a sharp drop in Bitcoin’s value. On August 5, BTC plunged over 15%, hitting a low of $49,500 as global markets experienced a severe selloff. However, Bitcoin has since rebounded, surging by 24% from its recent lows and currently trading at around $61,000. While BTC is up 37% year-to-date, it remains 17% below its March high of $73,000.
Despite the ongoing market uncertainty, Bitcoin holders are increasingly accumulating, as reflected in Glassnode’s Accumulation Trend Score, which has reached its highest level. Long-term holders, who offloaded some of their assets during the March peak, are now replenishing their Bitcoin reserves. Over the past three months, more than 374,000 BTC have moved into long-term holdings, signaling a shift toward retaining assets rather than spending them.
Glassnode also highlighted that Bitcoin’s current price is still above the average cost for most active investors, a key threshold that separates bullish from bearish sentiment. This price stability suggests underlying market strength and growing optimism about Bitcoin’s future.
Investors are now closely watching the upcoming U.S. Consumer Price Index (CPI) release for clues on potential Federal Reserve rate cuts, with expectations divided between a 25 and 50 basis point reduction, according to insights from QCP Capital.
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