Glassnode: LTHs resume buying BTC, but final capitulation remains a risk

Bitcoin long-term holders have begun to absorb supply, signaling a potential shift from a selling to an accumulation trend as the cryptocurrency trades below $60,000, Glassnode noted in a research report. The firm explained that while institutional outflows and defensive positioning in the options market are weighing on investor sentiment, long-term holders have resumed accumulating, with several wallet cohorts increasing their BTC holdings. Investor stress remains high, with more BTC held at a loss than in profit. However, long-term holders and standby buyers are absorbing the supply coming to market. While U.S. spot BTC ETFs continue to see net outflows, the spot order books on Binance and Coinbase are leaning toward buy orders. Glassnode cautioned that risks remain, citing high demand for downside hedging in the options market and an increase in leveraged long positions, which could lead to further liquidations. The report also highlighted high implied volatility, suggesting that another sharp price drop is possible before a market bottom is firmly established.