On-chain data shows signs of a new Bitcoin accumulation over the past month.
Bitcoin UTXOs from 1 week to 1 month have risen in recent days
As noted by an analyst in a CryptoQuant afterUTXOs bought between 1 week and 1 month ago are up since the FTX crash.
The relevant indicator here is the “Realized Cap – UTXO age groups”, which tells us which age group has what percentage of the limit realized by Bitcoin.
The “realized caphere refers to a type of BTC capitalization model in which the crypto cap is calculated by weighing each coin in the circulating supply against the price at which it last moved, then taking the sum for the entire supply.
This capitalization method differs from the usual market capitalization, where all coins are simply multiplied by the current BTC price.
The “age groups” are groups that define the time period under which the UTXOs that fell into it were last moved. For example, the “1m-3m” age range includes all UTXOs that have not shown movement since 1 to 3 months ago.
Now the age range that is relevant in the current discussion is the “1w-1m” group. Here is a chart showing how this Bitcoin band’s realized cap contribution has changed over the past few years:
Looks like the value of the metric has been trending up recently | Source: CryptoQuant
As you can see in the chart above, the realized limit of the Bitcoin UTXOs that fell into the 1w-1m band fell during the bear market and had reached very low values by the time the FTX collapse rolled around.
However, since the crash, the age group has seen a rapid upward trend. This means that a large number of coins were purchased between 1 week and 1 month ago.
Based on this trend, it appears that some investors have been accumulating the lows seen after the crash, despite the fact that the broader market is feeling uncertainty due to the FTX contagion which may trigger a cascade of bankruptcies of caused by other platforms.
BTC price
At the moment of writing, The price of Bitcoin floating around $16.5k, down 1% over the past week. Over the past month, the crypto has lost 15% in value.
Below is a chart showing the trend in the coin’s price over the past 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