- Glassnode reports a ship in long-term investor behavior.
- Based on the Liveliness metric a rising number of investors are hodling their BTC.
- Also, BTC has thus far managed to remain above the $30,000 support level.
Top crypto Bitcoin has once again managed to stay above the $30,000 support level. However, Bitcoin whales have been taking advantage of the recent volatility and are accumulating the top crypto.
According to Glassnode, investors with a long-term risk outlook have been accumulating the top crypto. Specifically, the Liveliness metric shows a shift in long-term investor behavior. The shift shows investors are now “macro hodling”. Notably, Glassnode believes the trend represents a ritualized response to downward market trends.
To clarify, Liveliness is the ratio between the number of cumulative coin days destroyed compare to the total coin days accumulated by the network. Every day the system records one coin day per unit of circulating supply. At the same time, investors ‘destroy’ coins when they move or spend them. As a result, these actions reset the moved coin lifespan to zero.
The ratio varies from zero to one. Zero represents the highest ratio of dormant or hodled BTC supply. This is best shown by the formula:
Liveliness = (Sum of Coin Days Destroyed) / (Sum of Coin Days Created)
Thus, based on the current Liveliness trend, the ratio indicates that BTC is in an accumulation phase.
As such, a decrease in Liveliness shows that a high ratio of the coin supply is dormant. Meaning, investors are in hodl mode. On the other hand, when there is a rise in Liveliness this means that hodlers have begun spending their coins. Also, a rise in liveliness is not always a bearish indicator. For instance, the rise in crypto adoption earlier this year was accompanied by an increase in Liveliness.
This meant that BTC prices continued to rise as growing demand managed to absorb the selling pressure. However, in April the selling pressure finally overran the market’s buying capacity. According to crypto analyst Willy Woo, this led to long-term holders acquiring coins from speculators that began selling off their holdings in response to the market shift. Woo added,
It’s very clear to see that long-term holders are mopping up the speculative coins at a strong pace. It’s now a waiting game until this is reflected in the price action, the data is confidently pointing to an accumulation bottom forming.
At the time of writing, BTC was trading at $34,301.85 with a trading volume of $18,631,091,256.