• Bitcoin dropped 11% in August, hovering around $26,000
• Glassnode’s Accumulation Trend Score reveals a paucity in accumulation from any cohort
• Most cohorts revealed a red hue, signifying that most were distributing coins rather than accumulating
Bitcoin Market Sees Slowdown Amid August Downturn
The Bitcoin market has seen a downturn in August as the price of the cryptocurrency has dropped roughly 11% to hover around $26,000. Data provided by Glassnode’s Accumulation Trend Score indicates a marked paucity in accumulation from any wallet cohort.
Glassnode’s Accumulation Trend Score
Glassnode’s Accumulation Trend Score provides an insight into investors‘ acquisition behavior by evaluating the size of different wallet cohorts and their quantity of Bitcoin amassed during the last two weeks. A score closer to 1 implies that entities within that cohort primarily accumulate coins while a score nearing 0 suggests a predominant distribution of coins within the cohort.
Red Hue Indicates Distribution
Most wallet cohorts showed a red hue on Glassnode’s visualization which indicates that most were distributing coins rather than accumulating them. It is important to note that exchanges and miners are excluded from this calculation to ensure an unbiased evaluation of the market sentiment.
Heightened Seller Exhaustion Indicates Low-Risk Bottom
In spite of this slowdown, data indicates increased seller exhaustion which could signal a low-risk bottom for Bitcoin traders. This suggests that despite August’s downturn there remains potential for further upward momentum if buyers start entering back into the market.
Shift In Investor Strategy?
Bithumb facilitated what was reportedly the fifth largest Bitcoin exodus of 2023 signaling potential shift in investor strategy which may be influenced by global energy concerns or heightened volatility among other factors.