BTC is seeing accumulation across all cohorts, according to Glassnode

As we entered the month of February, the price of bitcoin was hovering around $80,000. During this time, larger investors, known as whales, were starting to show interest in the market, while smaller retail investors were selling off their holdings. However, just a week later on February 5th, bitcoin experienced a sharp drop to $60,000, leading to a shift in market sentiment towards accumulation.

This recent market movement follows a significant capitulation event in bitcoin’s history, which now seems to be transitioning into a phase of synchronized accumulation. Glassnode’s Accumulation Trend Score by cohort is a metric that measures the strength of accumulation across different wallet sizes based on entity size and the amount of BTC accumulated over the past 15 days. A score closer to 1 indicates accumulation, while a score closer to 0 suggests distribution.

Overall, the Accumulation Trend Score by cohort has risen above 0.5, reaching 0.68 on an aggregate basis. This is the first time since late November that widespread accumulation has been observed, a period that previously coincided with bitcoin’s price forming a local bottom near $80,000.

Among different wallet sizes, those holding between 10 and 100 BTC have shown the most aggressive buying behavior as prices dropped towards $60,000. While it is uncertain whether the market has hit its ultimate bottom, it is clear that investors are once again recognizing the value in bitcoin after a significant pullback of more than 50% from its previous all-time high in October.

This shift towards accumulation signifies a renewed interest in bitcoin from investors across different cohorts, indicating a potential turning point in the market sentiment. As the market continues to evolve, it will be interesting to see how this accumulation phase plays out and whether it leads to a new price rally in the near future.