Crypto analyst Ali Martinez has shared a Bitcoin indicator from the blockchain analytics platform Glassnode showing an increase in large companies accumulating BTC over the past four months. Will BTC’s price follow suit?
#Bitcoin is witnessing one of its most significant accumulation streaks in almost 3 years!
Notably, the Accumulation Trend Score has hovered near 1 for the past 4 months, signaling that larger entities are accumulating $BTC. This trend indicates strong confidence in the market! pic.twitter.com/QcJOEhzBUb
— Ali (@ali_charts) February 1, 2024
Increase in Bitcoin Accumulation Trend Score
Glassnode’s Bitcoin Accumulation Trend Score is an indicator used to determine the size of entities actively purchasing BTC. The crypto analyst stated that the indicator’s metric within the last four months is “one of its most significant accumulation streaks in almost 3 years.”
The rising Bitcoin indicator demonstrates that large companies show interest and “strong confidence” in the leading cryptocurrency. Evidence of such increases is shown in recent activities that have occurred within the Bitcoin ecosystem.
Large companies like the business intelligence firm MicroStrategy have continuously accumulated BTC. Following its most recent purchase in late December 2023, MicroStrategy held a Bitcoin portfolio of over 189,000 BTCs. Stablecoin issuer Tether is another firm that recently began to stack BTCs. Following its first disclosed purchase in May 2023, the stablecoin issuing company has accumulated about $2.8 billion worth of BTC.
Another factor that has contributed to the increase in Bitcoin Accumulation Trend Score is the recently approved spot Bitcoin exchange-traded fund (ETF), an investment vehicle that allows users to invest in BTC while benefiting from the safety common to traditional financial companies. Since offering such a product entails that financial companies purchase actual BTC, the demand for the cryptocurrency has soared.
Currently, more than 10 financial companies have issued a spot Bitcoin ETF, netting billions of dollars.
Will BTC Rise Too?
While the current metric shared by Ali is commendable, it is yet to reflect to a large extent on BTC’s value. Although BTC rose to as high as $48,000 amid anticipation of the spot Bitcoin ETF, the asset’s price has now rebounded to a current trading price of $42,500, representing a 2% correction over the last 24 hours.
Source: CoinStats
