According to a recent crypto analytics firm CryptoQuant observation, Bitcoin’s current accumulation rate is higher than the 2018 bear market. Since Bitcoin hit $69,000 and the bear market began around a year ago, the crypto sector has been met with several unanticipated challenges, such as the pandemic, fears of inflation, and the Russo-Ukrainian conflict. This has caused the financial markets to be dominated by doubt and fear, leading to severe deleveraging.

As per the firm, the lengthy bear market has caused a substantial buildup of coins, evident from the Realized-UTXO Age Bands. This metric shows coin groups based on their lifetimes and their share of the total realized cap. Currently, the metric indicates that the number of coins with a lifespan of more than one year has grown steadily, resulting in a large amount of market accumulation.

“Even though the price dropped significantly below $20K recently, the accumulation rate appears to be higher than the previous bearish phase of 2018, suggesting that Bitcoin remains a valuable asset for many market participants. Once the market has reached a long-term bottom, it will undergo a substantial bullish run.” Wrote the firm.