Bitcoin Yet To See Meaningful Capital Return, Glassnode Says

On-chain analytics firm Glassnode has highlighted how accumulation from the large Bitcoin entities has remained relatively weak recently.

When the value of the Accumulation Trend Score is greater than 0.5, it means large investors (or a large number of small entities) are accumulating. The closer the metric is to 1, the stronger this behavior is. On the other hand, the indicator being under 0.5 implies that distribution is the dominant behavior on the network. The extreme point on this side of the scale lies at 0.

Now, here is the chart shared by Glassnode that shows how the Bitcoin Accumulation Trend Score has changed over the course of the cycle:

The price crash has been met with some accumulation, but from the chart, it’s visible that the indicator’s color has still only been red. “The Accumulation Trend Score has struggled to push above 0.5 since early February,” noted the analytics firm.

While the current value suggests aggressive distribution is no longer happening, it’s not necessarily a sign of a return of demand for Bitcoin, either. As Glassnode explained, the trend reflects “persistently weak accumulation, particularly among larger entities, signalling that meaningful capital has yet to step back in.” It now remains to be seen how long the current neutral market behavior will continue and which way the next shift will lean.

Bitcoin slipped under the $63,000 level on Tuesday, but the market has rebounded since then as the cryptocurrency’s price has returned to $65,300.