Bitcoin Accumulation Trend Score Indicates Market Uncertainty

Crypto KOL Murphy posted on X that the Bitcoin Accumulation Trend Score (ATS) serves as a valuable metric for assessing on-chain accumulation behavior by evaluating the relative balance changes among different wallet groups, with greater weight given to large entities. An ATS closer to 1 suggests a tendency for large entities to accumulate. Since February 5, the ATS has remained below 0.5, indicating a general lack of active accumulation by holders. During the price rebound from March 1 to 4, the ATS dropped to 0.23, suggesting that large holders began distributing their assets amid the price increase. Additionally, on January 14, short-term holders transferred a total of 20,477 BTC to exchanges for profit-taking, reflecting a lack of confidence in the current market conditions. Conversely, traditional capital, represented by spot ETFs, played a crucial role during this period. From February 24 to March 4, there was a continuous net inflow into ETFs, absorbing some of the supply and creating conditions for a rebound. This indicates a strong divergence in market sentiment, with some investors selling due to pessimism and others buying with optimism. For retail investors, it may be prudent to observe the market until the situation becomes clearer before making further decisions.