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.

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About the Author

Martin Gaspar Headshot
Martin Gaspar
Research Analyst

Martin is a research analyst at CrossTower. Martin has several years of experience in conducting fundamental research and cryptocurrency analysis. Prior to joining CrossTower, Martin was a fixed income research analyst at Wells Fargo Securities, where he helped support traders, salespeople, and buy-side clients through his actionable investment recommendations. He has a passion for crypto and has followed the space extensively since 2012. Martin holds a BA from Colorado College, where he graduated with Distinction in Economics.