Accumulation Addresses Rising
What on-chain data can explain Bitcoin’s (BTC) recent strength? One metric is accumulation addresses, which Glassnode defines as addresses that have at least 2 incoming non-dust transfers and have never spent funds. These have been steadily increasing over Q3 2021, which indicates that more investors are choosing to purchase and hold their BTC for the long term. Similar to traditional markets, this kind of activity could be thought of as bullish for Bitcoin’s price as it can lower
s supply available on exchanges in the long term, which may lead to price increasing from a gradual supply squeeze. Bitcoin accumulation addresses hit an all-time high of roughly 550,000 addresses on September 29, 2021, which compares to roughly 534,000 as of the end of Q2 2021 (+3%).
Another metric that points positively for Bitcoin is the supply held by long-term holders (LTH), which Glassnode defines as addresses holding Bitcoin for 155 days or more. Over Q3 2021, this has ticked up to over 80% of the supply being held by long-term holders, indicating that users are increasingly choosing to hold their BTC.
CrossTower Inc. provides this content for general information purposes, to better inform you on your digital asset investment journey. We do not provide investment recommendations or provide tax advice. Please consult your investment professional or tax advisor if you require assistance in these areas.
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