Glassnode's Accumulation Trend Score Has Reached Its Maximum Value of 1.0

Glassnode's Accumulation Trend Score has reached its maximum value of 1.0, indicating broad-based, aggressive accumulation by investors irrespective of the amount of BTC they already hold.

Glassnode's Accumulation Trend Score, designed to measure the strength of buying activity across different investor cohorts, has reached its maximum value of 1.0, highlighting a broad-based and aggressive accumulation pattern.

The metric, which analyzes the relative buying strength across wallet cohorts based on their existing bitcoin holdings and the amount accumulated over the past 15 days, reached 1.0 in the latest reading. It excludes exchange and miner wallets to avoid any potential distortion of the analysis.

The analysis begins with the largest “whale” cohort, holding over 10,000 BTC, which began its latest accumulation phase in early May. As the price rose, cohorts with smaller holdings, such as those holding 1,000 to 10,000 BTC, followed suit, increasing their buying activity and converging on similar levels of relative buying strength.

This stands in stark contrast to the period from January to April, when most cohorts were largely reducing their holdings as bitcoin slid from its then-record high of $109,000 to lows around $75,000.

Renewed demand is also evident in options market activity, with large bullish positions observed, according to data from CoinDesk Research.

The $300,000 strike for June expiry has emerged as the most popular call option, with $620 million in notional value, while another cluster of $420 million is at the $200,000 strike.

Typically, bitcoin tends to decline after reaching an all-time high as investors engage in profit-taking activities. However, traditional assets, such as the S&P 500 and gold, often continue their rallies in a more gradual manner.

If bitcoin were to exhibit a similar pattern of sustained buying pressure after a period of rapid price increase, it may indicate the beginning of a sustained bull cycle, a development that many market participants are keenly observing.