On-chain weakness into the Bitcoin ETFs launch

And is on-chain activity still relevant for Bitcoin's price

The on-chain accumulation score is a measure of the sentiment in the Bitcoin market extracted from on-chain patterns.

Right as the spot Bitcoin ETFs were up for approval, the on-chain sentiment turned negative. And now the price action for BTC is following suit. 

So what's going on with the on-chain accumulation trend? Did the ETFs launch narrative really do anything? And is on-chain data still relevant when we have more and more options to trade Bitcoin via proxies?

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On-chain weakness into the Bitcoin ETFs launch

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 thinking.

The takeaway

The spot Bitcoin ETFs launch was a non-event as far as on-chain data is concerned.

Not only that but there is no support for Bitcoin’s price in the accumulation trend.

In particular neither the whales nor the small fish are coming to the rescue while Bitcoin is coming down from the post ETF launch high.

However the real question we need to ask regarding on-chain analysis is how well need to adapt it as the volume of “paper Bitcoin” transactions is ramping up.

As a reminder you can check the accumulation trends on the dashboard (updated daily).

A lot of hype around the ETFs, but nothing on-chain