Glassnode observes “significant accumulation” of bitcoin whales, end of bear market?

Last Updated: 11 October 2022

In Glassnode’s weekly on-chain analysis report, the company writes that bitcoin has managed to keep itself “remarkably” stable in recent weeks. By that, it refers specifically to stability against traditional financial assets like the Nasdaq 100 and the S&P 500, which have experienced solid declines.

Bottom ahead

In the report, Glassnode compares current market conditions with previous bear markets, among other things, only to conclude that almost everything indicates that we are heading towards a bottom. Both on-chain indicators, market structure and investor behaviour seem to be moving in this direction.

That said, we are dealing with a unique situation for bitcoin this time. Never before in the history of bitcoin has the digital currency gone through a global recession, something that is currently imminent or already underway.

The high inflation that is swirling around the world and the reaction of central banks are having a decidedly negative impact on the prices of financial assets. The problem is that this inflation is far from gone and we will continue to suffer from it for some time.

Yet bitcoin is managing to hold up reasonably well in this climate, and the gentlemen and ladies of Glassnode have noticed this too. Unlike stocks, bonds and foreign currencies, bitcoin still manages to hold its own against the US dollar quite well.

Accumulation time

The bottom of a bear market is usually the time when the big boys get in and accumulate, to prepare for higher prices. Glassnode compares two charts in the new report.

The first chart concerns the bear market from September 2018 to April 2019 and the other concerns the current woes they measure from April 2022. What is striking is that both charts are extremely similar. Both include a capitulation and bearmarket rally.

Of course, this is not to say that we will recover in exactly the same way this time, after all, past results are no guarantees for the future. What is striking, however, is that once again whales are taking bitcoin off the exchanges in large numbers.

The net outflow of whales currently stands at 15,700 bitcoin, which is the highest level since June 2022. Incidentally, Glassnode defines a whale as an entity with more than 1,000 bitcoin.

  • Gabriele Spapperi

    Gabriele Spapperi is a veteran cryptocurrency investor and blockchain technology specialist. He became fascinated with Bitcoin and distributed ledgers while studying computer science at MIT in 2011.

    Since 2013, Gabriele has actively traded major cryptocurrencies and identified early-stage projects to invest in. He contributes articles to leading fintech publications sharing his insights on blockchain technology, crypto markets, and trading strategies.

    With over a decade of experience in the crypto space, Gabriele provides reliable insights and analysis on the latest developments in digital assets and blockchain platforms. When he's not analyzing crypto markets, Gabriele enjoys travel, golf, and fine wine. He currently resides in Austin, Texas.

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