Ecoinometrics - Bitcoin on-chain: the steady accumulation phase

Bitcoin on-chain accumulation report, July 2023

The word of the month is sustainable growth. The Bitcoin on-chain accumulation trend shows a pattern that is reminiscent of what happened during the last bull market. This is another sign that the market is still very much bullish on Bitcoin.

---

The Ecoinometrics newsletter gives you insights from crypto and macro data to help you make better investment decisions. 

We spend hours every day gathering data, creating metrics and bringing them to life with data visualizations that allow you to quickly get to the heart of things.

We then distill all that knowledge in each issue of the newsletter with less words and more charts so that you get insights, direct to the point, in five minutes or less.

Join more than 20,000 investors here:

Done? Thanks! That’s great! Now let’s dive in.

P.S. Checkout our latest tracker of MicroStrategy Bitcoin holdings at https://www.ecoinometrics.com/microstrategy-bitcoin-holdings-with-charts/.

---

Bitcoin on-chain accumulation report, July 2023

Bitcoin is open source, the blockchain is public, the network is permissionless. So there aren’t really insiders the same way there are insiders owning stocks of a public company. 

But the open nature of the blockchain allows you to track which addresses are accumulating and which addresses are distributing coins. Taken in aggregate this can be used as a way of gauging the sentiment that’s driving Bitcoin’s movements at the most fundamental level.

This is what we do every month in this report and that’s the closest you’ll get from understanding what the Bitcoin insiders are doing.

The takeaway

Here is what you need to know if you don’t have time to read the whole thing:

• The key whales cohort of the last bull run (addresses controlling 1k to 10k BTC) is sucking away coins from the other whales cohorts.

• At the same time the small fish are also increasing their holdings at a good pace.

• This is the kind of healthy combination that is bound to support Bitcoin’s growth. 

• The accumulation score itself is hanging around 0.6. In the past this range has meant sustainable growth.

So overall the picture painted by the accumulation trend on-chain is one that’s supportive of more upside for Bitcoin. Of course on-chain data is only one piece of the puzzle. But better that than the opposite.

Here is the table summarizing the change in Bitcoins controlled by the different cohorts of addresses over the past 90 days.

Now let’s dig into the details.

Breaking down the cohorts