BTC Set to Rise on Strengthening Fundamentals
Bitcoin is seeing impressive growth on nearly all fronts as we enter the final weeks of Q3 2021. We suggest investors look past the crash in prices last week, which we believe was a result of soft spot volumes and liquidations of overextended leveraged longs, and examine the on-chain data, which points to continued growth in the Bitcoin network. We are seeing rising confidence among Bitcoin holders across several metrics. Moreover, address and entity growth continues to trend higher in recent weeks, with some of these metrics at records.
There are several metrics that point to strengthening investor confidence in BTC. The first of which is the holder ("HODLer") net position change, which crypto intelligence provider Glassnode defines as the monthly position change of long-term investors. This figure has been net positive since mid-August 2021, indicating long-term investors are accumulating BTC. Recent data is especially encouraging -- this figure surged higher on August 29, 2021, by approximately 35,000 BTC ($1.7 billion), as shown in Figure 1, reflecting accumulation activity by these investors.