On-Chain Data Shows Signs of Fresh Bitcoin Accumulation
On-chain data shows signs of some fresh Bitcoin accumulation taking place over the past month.
Bitcoin UTXOs aged 1 week to 1 month have risen in recent days
As pointed out by an analyst in a CryptoQuant post, UTXOs bought between 1 week and 1 month ago have rallied since the FTX crash.
The relevant indicator here is “Realized Cap – UTXO Age Bands”, which tells us which age group has which percentage of Bitcoin realized cap.
The “realized cap” here refers to a type of BTC capitalization model where the crypto’s cap is calculated by weighing each coin in the circulating supply against the price it was last moved to, then taking the total for the entire supply.
This capitalization method is different from the regular market cap, where all coins are simply multiplied by the current BTC price.
The “age bands” are groups that define the time period that the UTXOs that fall into it were last moved. For example, the “1m-3m” age band includes all UTXOs that have not shown any movement since between 1 and 3 months ago.
Now the age group of relevance in the current discussion is the “1w-1m” group. Here is a chart showing how the realized cap contribution of this Bitcoin band has changed over the last couple of years:
Looks like the value of the metric has been trending up recently | Source: CryptoQuant
As you can see in the graph above, the realized top of the Bitcoin UTXOs that fell in the 1w-1m band was in a decline during the bear market and had reached very low values by the time the FTX collapse rolled around.
Since the crash, however, the age group has seen a rapid rise. This means that there has been a large number of coins bought between 1 week and 1 month ago.
Based on this trend, it appears that some investors have been busy rallying at the lows seen since the crash, despite the broader market feeling uncertainty due to the FTX contagion possibly causing a cascade of bankruptcies on other platforms.
BTC price
At the time of writing, Bitcoin’s price is hovering around $16.5k, down 1% in the last week. Over the past month, the crypto has lost 15% in value.
Below is a chart showing the trend in the price of the coin over the last five days.
The value of the crypto seems to have returned to a flat curve during the last few days | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com
