• Bitcoin accumulation cooled off in August, but investors are looking forward to September.
• Data reveals that Bitcoin bear market has caused 4 million coins to be held at a loss.
• Robust growth of the crypto asset is outpacing inflation, but Federal Reserve’s 2024 plans might create headwinds.
Bitcoin Accumulation Cools Off in August
Bitcoin accumulation cooled off during August, as all eyes were on what September has in store for the crypto asset’s future. Data revealed that the recent Bitcoin bear market had caused 4 million coins to be held at a loss by long-term holders (LTH).
Robust Growth of Bitcoin Outpaces Inflation
Despite the recent bearish market trends, a robust growth trend of Bitcoin was seen which outpaced inflation. This data also raised concerns about diminishing returns for investors.
Federal Reserve’s 2024 Plans Could Impact Bitcoin
The Federal Reserve announced its plans for 2024 and this could potentially create headwinds for Bitcoin as it could result in volatile markets conditions or rising inflation rates.
Trading Analysis Reveals Holding Pattern
Analysis of the trading activity revealed a major holding pattern with UTXO data suggesting that most investors are expecting prices to rise again before they begin accumulating their holdings once more.
Conclusion
Overall, the data suggests that while there may have been cooling off in terms of accumulation during August, all eyes will still be on what comes in September and beyond. The Federal Reserve’s plans may cause some volatility and potential headwinds for Bitcoin, but overall it appears that long-term holders remain optimistic about its future prospects despite some losses being incurred due to the current bear market climate.