ShayanMarkets2023-02-22

The accumulation rate is higher compared to the 2018 bear market!

Since Bitcoin reached $69K and the bearish cycle began almost a year ago, several unstable periods have occurred due to a pandemic, inflation concerns, and the war between Russia and Ukraine. Therefore, the financial markets remained dominated by uncertainty and doubt. Bitcoin's supply dynamics can be analyzed through the Realized Cap – UTXO Age Bands (%) metric, which shows coin groups based on their lifetimes and their share of the total realized cap. There has been a steady increase in the number of coins with a lifespan of over a year, leading to heavy market accumulation. Accumulation and hodling behaviors are expected in bearish cycles, indicating that investors still believe in Bitcoin. Even though the price dropped significantly below $20K recently, the accumulation rate appears to be higher than the previous bearish phase of 2018, suggesting that Bitcoin remains a valuable asset for many market participants. Once the market has reached a long-term bottom, it will undergo a substantial bullish run.