• Entities holding 10,000+ Bitcoin have continued to accumulate Bitcoin since the FTX collapse.
• A Glassnode metric called the Accumulation Trend Score (ATS) showed a divergence between super whale buyers and retail sellers.
• The ATS score has since become more neutral, indicating lingering macroeconomic uncertainties.
Bitcoin has been in the spotlight in recent months with its price volatility and the unprecedented accumulation of the cryptocurrency by large entities. A recent analysis by CryptoSlate of Glassnode data has found that entities holding 10,000+ Bitcoin have continued to accumulate the cryptocurrency since the FTX collapse.
The Accumulation Trend Score (ATS) is a metric which looks at the relative size of entities that are actively accumulating or distributing their Bitcoin holdings. This metric uses a spectrum between 0 to 1, with a score closer to 0 indicating distribution or selling and a score closer to 1 showing accumulation or buying. The ATS showed a divergence between super whale buyers and retail sellers when the FTX collapse occurred around early November 2022, even as the Bitcoin price reacted negatively to the news. This suggests that investors, as a whole, saw value in buying at discounted prices.
Cohort analysis gives a graphical representation of accumulation and distribution across six cohorts, ranging from minnows with less than one BTC to super whales holding more than 10,000 BTC. During the FTX saga, all cohorts were accumulating aggressively, however this trend ended around mid-December 2022 when whales (entities with 10,000+ Bitcoin) began to reduce their buying pressure.
Since then, the ATS has become more neutral and has been hovering around 0.5, indicating lingering macroeconomic uncertainties going into 2023. This is in stark contrast to the accumulation trend seen in late 2020, when the ATS peaked at 0.9. This suggests a decrease in buying pressure from larger investors, which could be a sign that the Bitcoin price rally is beginning to slow down.
Overall, the data shows that while super whales remain aggressive accumulators, retail investors have begun to sell their Bitcoin holdings. This could be a sign that the market is beginning to cool off after an impressive run in 2020. It will be interesting to see how the market develops in the coming months and whether the current trend of subdued accumulation continues.