As the cryptocurrency market continues its rollercoaster ride, bitcoin holders are once again finding themselves in a net selling position. According to data released by Glassnode, all cohorts of bitcoin wallets have shifted back to distribution mode, marking a significant behavioral change in the market dynamics following a brief period of accumulation.
Wallet Cohorts and Accumulation Trends
The Accumulation Trend Score, a metric provided by Glassnode, sheds light on the buying and selling patterns of different wallet cohorts. This score provides insight into the market behavior by disaggregating the data to reveal how various groups of bitcoin holders are acting. The score ranges from 0 to 1, where a value closer to 1 suggests strong accumulation by a cohort, and a value closer to 0 indicates distribution.
Currently, all wallet cohorts—from those holding less than one bitcoin to those with more than 10,000—are net sellers. This marks a reversal from the previous week’s activity, where significant buying was observed among larger holders, particularly those in the 10-100 BTC and 1,000-10,000 BTC ranges. These cohorts, often referred to as “whales,” have been instrumental in shaping market trends, and their shift back to selling could have considerable implications for bitcoin’s price trajectory.
Market Consolidation Amid Price Fluctuations
Bitcoin’s price has been hovering around the $117,000 mark, with recent trading sessions in Asia providing a slight uptick from the $115,000 level over the weekend. Asia’s influence on the market has been notable, consistently driving bitcoin prices approximately 10% higher over the last three months, according to Velo data. In contrast, the European trading session has been characterized by pullbacks, contributing to a more than 10% decline in bitcoin’s value within the EU market during the same period.
Despite these fluctuations, the market appears to be in a consolidation phase, a trend many analysts expect to persist throughout September. The $107,000 level, noted at the beginning of the month, is still considered a probable bottom, offering a potential support level for bitcoin should further declines occur.
Balancing Optimism and Caution
For investors, the current market conditions require a careful balancing act between optimism and caution. On one hand, the recent price increases driven by Asian markets suggest potential upward momentum. On the other, the shift to net selling by all wallet cohorts indicates a more cautious approach from larger holders, which could signal a lack of confidence in sustained price growth in the short term.
This cautious sentiment may be influenced by various factors, including macroeconomic uncertainties and regulatory developments that continue to shape the broader cryptocurrency landscape. As regulatory scrutiny intensifies worldwide, some investors might be opting to reduce exposure, contributing to the net selling trend observed across all wallet cohorts.
The Road Ahead
As September progresses, market participants will be closely monitoring bitcoin’s price movements and the behavior of different wallet cohorts. The interplay between accumulation and distribution will likely remain a critical factor in determining the cryptocurrency’s short-term direction.
Investors should also keep an eye on developments in major trading regions. Asia’s continued influence could prompt further price increases, while potential regulatory changes in Europe and other regions might impact investor sentiment and trading activity.
In the volatile world of cryptocurrencies, staying informed and agile is crucial. While the current consolidation phase presents challenges, it also offers opportunities for those willing to navigate the complexities of the market. Whether you’re a seasoned trader or a newcomer to the crypto space, understanding the nuances of wallet cohort behavior and broader market trends can provide valuable insights for making informed decisions.
As we move forward, the coming weeks will reveal whether bitcoin’s consolidation phase is a temporary lull before another rally or a precursor to further declines. For now, market participants are left to ponder their next moves in a landscape that remains as unpredictable as ever.
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.
