28. Februar 2024

Amid Volatility, Bitcoin Accumulation Sees Slowdown

• Bitcoin prices have dropped 11% in August, despite the Accumulation Trend Score indicating a paucity of accumulation from any cohort.
• Glassnode’s algorithm calculates the Accumulation Trend Score by evaluating the size and quantity of Bitcoin held by different entity wallet cohorts.
• Bithumb facilitated the fifth largest Bitcoin exodus of 2023, signaling a potential shift in investor strategy.

Bitcoin Prices Drop 11% Despite Lack of Accumulation

Bitcoin prices have dropped roughly 11% in August, hovering around $26,000. Glassnode’s Accumulation Trend Score offers a detailed breakdown of cryptocurrency acquisition behavior of different entity wallet cohorts and calculated this score by evaluating the size and quantity of Bitcoin held by them during the last fortnight. The score closer to 1 implies that entities primarily accumulate coins while a score nearing 0 suggests predominant distribution. However, this observation is supported by visualization’s red hue signifying most cohorts were distributing coins rather than accumulating.

Exchanges and Miners Excluded from Calculation

It is important to note that exchanges and miners are excluded from this calculation to ensure an unbiased evaluation of the market sentiments towards investment into Bitcoin. Moreover, heightened seller exhaustion indicates low-risk bottom for investors looking to purchase Bitcoin at lower price points as compared to previous months’ figures.

Bithumb Facilitates Fifth Largest Bitcoin Exodus

Bithumb facilitated the fifth largest Bitcoin exodus of 2023, signaling a potential shift in investor strategy with more users looking to cash out their investments rather than buying or holding onto them despite market downturns seen in recent months. This could be indicative of waning interest or decreased confidence in cryptocurrencies on part of traders due to various factors including global energy concerns as well as increased volatility across all markets.

Bitcoin Network Reaches 400 Th/s

The Bitcoin network also reached unprecedented heights when it recorded 400 th/s hash rate earlier this month with new miners joining its ranks every day; however there has been no corresponding increase in price suggesting an absence of bullish sentiment amongst investors even after achieving such great milestones for its network security and scalability protocols.

Options Open Interest Leaps Over Futures

Amidst all this volatility, options open interest has leapt over futures which may be indicative of traders hedging against future price movements either way or speculating on specific events such as halvings or other news announcements expected later down the line which could potentially affect prices positively or negatively depending on how they are received by markets at large.