The recent drop in the price of bitcoin hasn’t stopped long-term investors from hoarding tokens, according to Glassnode, a blockchain analytics company. As Wall Street’s Nasdaq index continues its rise, bitcoin’s pullback from that trend is a promising sign for those who consider the current drop a typical “respite” in a bull market. We offer a closer look at what is happening in the cryptocurrency market.
Indicator of change in the net position of long-term owners grows
Glassnode’s long-term net position change indicator, which tracks the 30-day change in the net amount of BTC entering or leaving exchange wallets for more than six months, turned positive in early April. It has risen sharply over the past four weeks, and net accumulation is now at its fastest pace since October 2021. This suggests that long-term BTC holders see the recent drop in the bitcoin price as an opportunity to accumulate more tokens.
Q9 Capital, a crypto investment platform, confirmed the trend, stating that “long-term BTC holders are increasing their positions, which means investors see the recent pause in price movement as an opportunity to buy more.” Glassnode defines long-term holders as wallets holding their coins for at least 155 days without selling or moving them.
Recent Bitcoin price movements
According to CoinDesk, bitcoin recently surpassed $31,000 on April 14, the highest since June 2022. Since then, the cryptocurrency’s price has fallen 12% to $27,500, while the Nasdaq index has gained more than 2% since mid-April. The Nasdaq to S&P 500 ratio, which bitcoin has followed closely in the past, has also risen more than 2% over that period.
Bitcoin beats express caution Bitcoin’s breakaway from the Nasdaq trend is causing concern among bitcoin beats, according to Markus Thielen, head of research and strategy at Matrixport. “Based on the correlation with (Nasdaq) tech stocks, bitcoin should have been above $30,000 by now, and the fact that it isn’t should caution all short-term traders,” Thielen said in a note to clients. “This separation could lead to more divergence between the two.”
While bitcoin’s separation from the Nasdaq trend may cause some concern, it is a promising sign for long-term holders who see the recent drop as an opportunity to accumulate more tokens. As the cryptocurrency market continues to evolve, it will be interesting to see how these trends develop and what they will mean for investors in the long term.