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Bitcoin Accumulation Has Rebounded Since FTX’s Collapse New BTC Buyers Suffered Lower Losses Than an Average Existing BTC Holder

As the general cryptocurrency market took a bite out of the recovery from the sudden collapse of FTX, Glassnode in a new report examined whether Bitcoin [BTC]the continued sell-off represented a continuation of the downtrend. Has there been a deeper psychological shift among BTC investors?

Read Bitcoin [BTC]s Price Prediction 2022-2023

From distribution to accumulation

The on-chain analytics platform has revealed that all cohorts of BTC investors have turned to coin hoarding after the recent price drop.

Glassnode evaluated BTC accumulation trend score metrics and found that the recent increase in accumulation following the sell-off could be related to 2018.

This change in behavior also followed many major selling events, such as the March 2020 COVID crash, the May 2022 LUNA crash, and June 2022 when the price first fell below $20,000. .

Source: Glassnode

A cohort of investors that perfectly exemplifies the hoarding trend are those holding less than one BTC, known as prawns. According to Glassnode, this category of investors has,

…has seen two separate waves of ATH balance increases over the past 5 months. Shrimps have added +96.2k BTC to their holdings since the FTX collapse and now hold over 1.21M BTC, which equates to a sizable 6.3% of the circulating supply.

Source: Glassnode

The fate of new Bitcoin buyers

Glassnode went further to assess the state of new BTC investments after the FTX debacle. Looking at the relationship between the short-term holders’ cost base and the spot price, which was $18,830,000, Glassnode found that the average recent buyer is underwater by -12%.

While noting that new buyers had a higher entry point than the average holder, Glassnode found that sellers were approaching exhaustion in the current BTC market and mass distribution was meeting an equal proportion of accumulation. This, according to Glassnode, drove the STH cost base below the realized price, giving new buyers an edge.

History in the making

A look at BTC’s adjusted MVRV ratio revealed that the current BTC market was at its lowest since the peak low set in December 2018 and January 2015. Anytime this metric is below one, it means that the active market is in an overall loss.

Glassnode found that this metric returned to a value of 0.63, which is very significant since only 1.57% of trading days in bitcoin history recorded a lower adjusted MVRV value.

Source: Glassnode

An assessment of BTC’s aSOPR metric also revealed that realized losses were also of historic magnitude. According to Glassnode,

The recent market reaction to the FTX selloff was manifested in an aSOPR reading that broke below the low band for the first time since March 2020. The significance of this event is again only comparable to the crash of the COVID and the market capitulation in December. 2018.

Source: Glassnode

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