Analytics from on-chain data provider Glassnode have revealed that smaller addresses holding 0.1 to 1 Bitcoin have surged since March 2020 when markets dumped.
However, it expressed caution that the bull market could be entering its latter stages as indicated by other on-chain metrics.
#Bitcoin on-chain indicators suggest conditions are similar to the second half or later stages of a bull market
This week we analyse:
– Accumulation dynamics
– HODLer Strength
– BTC Wealth Transfer cycles
Read more of our analysis in The Week On-chain👇https://t.co/JBMUHRb2Bo
— glassnode (@glassnode) March 22, 2021
Sat Stacking Up, Whales Down
The data provider defines ‘Sat Stackers’ as wallets that hold less than one Bitcoin. These have been on the rise for the past three years having accumulated a further 1.23% of the entire supply during the period.
These small accounts now hold an estimated 5.2% of the entire mined supply of BTC which is currently 18.66 million. Glassnode summarized that the persistent accumulation of small holders demonstrates a willingness to HODL through volatility with the trend unbroken from mid-2018 through the chaos of 2020.
Comparatively, whale wallets holding over 100 BTC have expanded by less than 1% over the past 12 months and have been relatively flat over the past three years. They do however hold the majority of BTC out there with 62.6% of the total supply.
This wealth transfer could be a sign that the bull market is entering its latter stages, the analytics provider concluded. However, Vailshire Capital Management founder and CEO, Dr. Jeff Ross, drew an opposing conclusion from the research:
Story continues on Crypto Potato