In the past two months, Bitcoin investors have favored accumulation over distribution. BTCs price movement this week did not change that.

Despite the asset hitting new highs this week, there is still a supply crunch, indicating that investors would rather accumulate than distribute their holdings. The market research firm Glassnode reported that these investor moves suggest they see current prices as offering relatively compelling value.

Bitcoin Investors Are Accumulating

Analyzing the raw Accumulation Trend Score, Glassnode discovered that this intense accumulation wave emerged when BTC first rallied past $100,000. After the breakout, investors gradually began to distribute more, and this gave way to stalled price action for a while.

Following the all-time high (ATH) of over $111,000 in May, BTC saw renewed accumulation pressures, which have remained elevated since then. The accumulation metric hovered above its historical average even as BTC sat through an extended consolidation phase. It is still above the average.

“This suggests that investors increasingly see the current range as a more favorable environment, despite price conditions being similar to those during the previous distribution phase in late-2024,” Glassnode said.

Long-term Holder Supply Grows

The persistent accumulation among investors is evident in the growing long-term holder (LTH) BTC supply. Evaluating the 30-day growth in LTH supply, Glassnode discovered that accumulation by this investor cohort is outpacing the monthly coin issuance. Miners are producing about 13,400 BTC monthly, but LTHs are increasing their balances at a pace of 19,300 BTC per month.

Bitcoin investors holding less than 100 BTC are also in accumulation mode. The cohorts, categorized into Shrimps (1 BTC), Crabs (1–10 BTC), and Fishes (10–100 BTC), represent investors ranging from retail participants to high-net-worth individuals.

This accumulation trend suggests that supply-side conditions are tightening, with LTHs absorbing newly issued supply at a fast pace. Glassnode noted that these investors have become price-insensitive as they accumulate and are unwilling to distribute their assets at current market prices. Analysts believe they are waiting for more meaningful market action before they start distributing.

Meanwhile, on-chain and derivatives market indicators are flashing signals of elevated volatility in the coming weeks. The supply-side tightening has made the market susceptible to demand shocks, and moderate fluctuations can trigger significant price volatility. Glassnode said the coiling and compression of prices across multiple timeframes support this observation.