By current on-chain metrics, Bitcoin is increasingly reminiscent of the 2020 market. This is the conclusion reached by the analysts of the Glassnode resource. In their opinion, starting in March 2021, long-term investors began to move cryptocurrency.
A phase of bitcoin accumulation, similar in terms of time, began in 2020. Then it lasted until mid-October, and then the autumn-winter rally began. However, the main difference between the current accumulation period is partial spending against the background of the price drawdown to $ 47,000.
If you look at the chart above, you can see that the previous phase of accumulation increased the balance of long-term investors. However, this time the accumulation of bitcoin began only at the beginning of May. To understand who and where spent the cryptocurrency despite the accumulation phase, analysts looked at the balance sheets of two major cryptocurrency exchanges: Coinbase and Binance.
As you can see in the chart above, Coinbase’s balance sheet continues to decline in a “staggered pattern”. This indicates that institutional interest in bitcoin in the US is still high, Glassnode said. That being said, Binance’s Bitcoin balance almost always increased at the stepped edge of Coinbase’s declining reserves. Starting in April 2021, Binance’s balance went completely into the gap.
Given that Binance is most commonly traded by retail investors, it is highly likely that the accumulation phase of bitcoin wastage occurred here. This could also be attributed to the exchange being the largest liquidity provider in the altcoin market, which has experienced exponential growth in recent days.
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