Then and Now: Framing Bitcoin's New Highs
Bitcoin has propelled back up over $60,000, hitting new all-time highs in light of the launch of the first several Bitcoin futures ETFs. However, investors may be thinking of the spring when Bitcoin hit its previous all-time high around Coinbase's IPO and then tumbled over 50% in the next couple months. But the context for the relatively high prices today feels different than the euphoria we saw in the spring. A look at on-chain data shows a more positive story than earlier in the year, supporting this thesis.
Accumulation addresses, defined by Glassnode as addresses that have at least 2 incoming non-dust (negligible/spam amounts of BTC) transfers and have never spent funds, have steadily increased since Q1 2021. We think of this metric as a proxy for the confidence of Bitcoin investors.