Bitcoin (BTC) long-term investors are taking advantage of the current dip in prices to accumulate more tokens, according to data from blockchain analytics firm Glassnode. The Long-term Holder Net Position Change indicator, which tracks the net amount of BTC entering or exiting exchange wallets that tend to hold coins for over six months, has surged in the past four weeks, with net accumulation occurring at the fastest pace since October 2021.
Q9 Capital, a crypto investment platform, said in an email that “long-term BTC holders are adding to their positions, implying that investors view the recent pause in price movement as an opportunity to acquire more.” Glassnode defines long-term holders as wallets holding onto their coins for at least 155 days without selling or moving them.
Bitcoin’s price has dropped by 12% to $27,500 since crossing above $31,000 on April 14, hitting the highest since June 2022, while Nasdaq has risen by over 2% since mid-April. The Nasdaq-to-S&P 500 ratio, which Bitcoin has closely followed in the past, has also increased by over 2% during that time period.
However, the decoupling of Bitcoin’s price from the continued uptick in Wall Street’s tech-heavy index Nasdaq is causing concern for some Bitcoin bulls. Markus Thielen, Matrixport’s Research and Strategy Head, noted that “based on the relationship with tech stocks (Nasdaq), Bitcoin should now have been above $30,000, and the fact that this is not the case should caution any short-term traders.” He added that “this decoupling could start a more significant divergence between the two,” and “unfortunately, Bitcoin does not have large outstanding shorts that could be squeezed – hence the potential divergence between Nasdaq and Bitcoin.”
The data suggests that despite short-term price fluctuations, long-term investors remain confident in Bitcoin’s future prospects, and are using this opportunity to accumulate more tokens. However, the decoupling of Bitcoin’s price from traditional market indicators could signal a shift in the crypto market’s relationship with traditional financial markets and potentially lead to more volatility in the future.