In a surprising turn of events, fresh data from Glassnode reveals that all Bitcoin wallet cohorts—ranging from the mighty whales to the smallest of hodlers—are currently engaged in distribution. This shift comes hot on the heels of Bitcoin’s recent surge beyond the $124,000 mark, a milestone that had sparked widespread accumulation just a week prior. This surge was notably analyzed in Bitcoin Hits $124K Record as 4 Tailwinds Align, highlighting the factors that contributed to this historic peak.
The Distribution Dance
Glassnode’s Accumulation Trend Score (ATS), a nuanced tool for gauging the market’s mood, tells the tale. By examining entity size and the volume of Bitcoin gobbled up over the past fortnight, the ATS paints a vivid picture: closer to 1 signals accumulation, while 0 screams distribution. Right now, the score hovers at a mere 0.26, underscoring a pronounced inclination toward offloading assets rather than hoarding them.
The shift is not just a blip on the radar—it’s a full-fledged pivot. From hefty investors clutching over 10,000 BTC to the modest wallets holding under a single Bitcoin, the trend is clear. Profit-taking is the name of the game. And it’s not entirely unexpected; Bitcoin historically pulls back after smashing through new peaks. This was evident when Bitcoin briefly flipped Google’s market cap, capturing the attention of investors eyeing further rallies.
Historical Echoes and Present Realities
It’s worth noting that Bitcoin’s current behavior fits a familiar pattern. Following a remarkable four-month streak of upward momentum from April through July, August has traditionally been a quieter month for crypto markets. Over the past three years, this month has consistently ushered in corrections, often dipping into double-digit territory.
But why the August lull? Reduced trading volumes and a general market cooldown could be contributing factors. As investors reassess their strategies, the distribution phase could be seen as a prudent move—cashing in on gains before the typical late-summer slowdown sets in.
Expert Insights and Market Implications
According to industry analyst Jenna Lee, “The current distribution phase indicates a healthy market cycle. Profit-taking at these levels isn’t surprising, especially after such a significant rally. But it does raise questions about the sustainability of Bitcoin’s recent high.”
Such cautionary notes are echoed by other experts who suggest that while profit-taking is a natural response to recent highs, it also casts a shadow over the immediate future of Bitcoin. Will the market stabilize after this distribution frenzy, or are we on the cusp of a deeper correction?
Looking Ahead
As investors contemplate their next moves, the crypto community watches closely. Will Bitcoin’s price stabilize, or are we headed for a more pronounced downturn? These are the questions on everyone’s lips.
In the meantime, the market remains in a state of flux. The distribution trend might cool off as quickly as it started, or it could signal a broader shift in sentiment. As always in the world of crypto, the only certainty is uncertainty.
With the current state of play, enthusiasts and investors alike will be keeping a keen eye on the evolving landscape, wondering if Bitcoin’s next move will be another leap forward or a cautious step back.
Source
This article is based on: All Bitcoin Wallet Cohorts Now in Distribution Mode, Glassnode Data
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
