Bitcoin Holders Shift from Accumulation to Distribution, Glassnode Data Shows

Bitcoin (BTC) has seen a change in its holding patterns, according to data from blockchain analytics firm Glassnode . The Accumulation Trend Score, a metric that measures the relative strength of Bitcoin accumulation by different entity wallet cohorts, has dropped to 0.5, the lowest level since October 2023.

The Accumulation Trend Score is calculated by comparing the net change in the supply held by each cohort over time. A positive score indicates that the cohort is accumulating more Bitcoin than it is distributing, while a negative score indicates the opposite. A score of zero means that the cohort is neither accumulating nor distributing.

According to Glassnode, the trend score dip indicates a transition from accumulation to distribution across almost all cohorts. This shift mirrors a similar distribution pattern observed in September 2023 before the rampant accumulation in October 2023, which preceded Bitcoin’s monumental rise from $25,000 to $49,000, spurred by the launch of the spot Bitcoin ETF.

Accumulation Trend Score | Source: Glassnode

However, the 100 to 1000 BTC holders remain the sole cohort still in the accumulation phase, with a positive score of 0.8. This cohort represents the majority of the Bitcoin supply, holding about 42% of the total.

Interestingly, the ‘whales’ – entities holding 10,000 BTC or more – have transitioned to distribution since Dec. 15, 2023, with a negative score of -0.4. Similarly, retail holders – entities holding less than 1 BTC – are now also marked by distribution, with a negative score of -0.22.

This overall distribution trend could have broader implications for Bitcoin’s market dynamics, potentially impacting price stability and liquidity. As more Bitcoin holders sell their coins, the supply on exchanges could increase, creating more selling pressure and downward price movements. On the other hand, distribution could also create more opportunities for new buyers to enter the market, increasing demand and upward price movements.

Bitcoin is currently trading at $42,977, up 0.4% in the last 24 hours, according to CoinMarketCap.

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