According to recent data from Glassnode, an on-chain analytics firm, while hodlers have continued accumulation, the short-terms holders have continued to send their supply to exchanges. Analysts suggest that such events from short term holders are usually connected to high volatility events but that is not the case as per recent data.
Data suggests that the short term holders have marked an increasing amount of Bitcoin supply sent to exchanges. Glassnode reported that short-term investors have sent about 1.04% of total supply to the exchanges.
However, the elevation has been continuing in recent weeks and the latest push is anticipated to have accelerated due to the regulatory crackdown in the United States. Notably, the current value remains significantly lower than the peak inflow volume of 1.82% observed across the LUNA implosion in May last year which sent triggers through the industry.
While such increasing values signal that volatility is on the horizon, volatility has remained at low levels in the recent weeks. Nonetheless, Glassnode has never rejected the idea that despite the stable market at the moment, volatility is imminent and is going to occur sooner or later.
Further, while the short-term holders have been sending their supply back to exchanges, that is not the case with all cohorts. The hodlers have continued their accumulation in recent weeks and are accumulating the asset at a significant speed. Data suggests that hodlers have accumulated Bitcoins at a rate of 42,200 coins per month.
This suggests that the price insensitive class that means the investors not much concerned about the little ups and downs in the prices are currently “absorbing a non-trivial portion” of the available supply. Additionally, when this value and behavior is compared to prior cycles, analysts have highlighted that this regime of steady and gradual accumulation commenced just over 2-years ago, and suggests that another 6 to 12-months may be ahead of us.
Divided in cohorts, investors of all sizes, from fishes to whales have marked an increasing accumulation as reported by Todayq News. Additionally, while these short-term holders have been wary in the face of the increasing regulatory crackdown, the long term holders marked an increase in spending in the past weeks.
Notably, after the recent regulatory crackdown in the US, crypto entities and investors have been caught off-guard and are worried about their funds. In June, the United States Securities and Exchange Commission (SEC) filed lawsuits against the two largest crypto exchanges- Binance and Coinbase.
After that, the investors sent a splurge of coins back to the exchanges. Amid the exchanges hit by the enforcement actions, Binance had experienced a bigger portion of inflows signaling waning trust of investors. However, weeks ahead are going to play an important role in shaping the trends of the future inflows and outflows amid the market turbulence.