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Bitcoin Accumulation Building With 14% of Supply Currently Held

Summary:
The research added that around 14% of the total supply is currently held in accumulation addresses. The findings by on-chain analytics firm Glassnode report that there has been a steady up trend in Bitcoin accumulation since the beginning of 2019. The chart overlays price action and the two do not appear to be correlated as prices have been sideways on that long time frame. The balance in accumulation addresses fell sharply during the massive bull run in 2017 as long term holders took profits and new capital entered the markets. #Bitcoin accumulation has been on a constant upwards trend for months. 2.6M $BTC (14% of supply) are currently held in accumulation addresses. Accumulation addresses are defined as addresses that have at least 2 incoming txs and have never spent

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The research added that around 14% of the total supply is currently held in accumulation addresses. The findings by on-chain analytics firm Glassnode report that there has been a steady up trend in Bitcoin accumulation since the beginning of 2019.

The chart overlays price action and the two do not appear to be correlated as prices have been sideways on that long time frame. The balance in accumulation addresses fell sharply during the massive bull run in 2017 as long term holders took profits and new capital entered the markets.

Glassnode defines an accumulation address as one that has at least two incoming ‘non-dust’ transfers and has never spent funds. Dust is defined as the tiny remnants of a transaction such as a few satoshis that are usually unspendable on their own.

Bullish Bitcoin Sentiment

The findings are among a number of bullish technical and fundamental signals for Bitcoin recently. Another all-time hash rate high has just been hit according to bitinfocharts.com which records the figure as 156.8 EH/s as of October 14.

Arcane Research commented on the milestone, adding;

“That’s 36% higher than the hashrate starting this year, a clear indication that the bitcoin fundamentals are as strong as they’ve ever been.”

It also noted that after staying in the ‘fear area’ for more than a month, the Bitcoin Fear and Greed Index is now back above 50 and has entered the ‘greed area’. Today the index is registering 56 which is the highest it has been for almost six weeks.

A massive endorsement from Fidelity Investments and Grayscale increasing their BTC Trust funds has also added to the bullish sentiment, especially from an institutional standpoint. Co-founder of 10T Holdings, Dan Tapiero, stated that shortages of Bitcoin may be possible if the Trust continues to consume it.

ETH Hasn’t Moved Either

According to more metrics from Glassnode ETH accumulation is also occurring with around 60% being ‘hodled’ for at least a year. ETHhub founder Anthony Sassano attributed this to the anticipation of ETH 2.0 which could be launched before the end of the year.

He added that new staking opportunities for Ethereum may entice some of those holders to start moving their stashes.

“With eth2 phase 0 approaching, it’ll be interesting to see how much this percentage comes down by as Ethereum OG’s move their stash into staking.”

With the top two crypto assets being accumulated and held, prices are bound to react for what remains out in the markets, providing anyone is willing to sell at the moment!

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