Long-term holders’ BTC supply hits record high
08 Nov 2023
Bitcoin is currently in an accumulation pattern, as its available supply reaches a new all-time low, according to data from Glassnode.
The findings show the illiquid supply of the world’s largest cryptocurrency, as well as long-term holders are increasing.
As supply becomes tighter, available Bitcoin is being purchased by long-term holding entities, Cointelegraph reports.
The bullish stance from long-term holders and Bitcoin accumulation amongst investors has resulted in them acquiring “92% of the newly mined supply,” according to the Glassnode data.
Following smaller entities accumulating the minted supply of Bitcoin, long-term holders have reached fresh highs compared to short-term holders, which hasn’t happened since July this year.
As well as the strong long-term holder ratio, the short-term holder supply fell to record lows. As a result, the combination is leading to a tightening of the Bitcoin supply available for purchase, which is likely helping to keep the price of the number one crypto above the $34,000 level and providing robust support above $30,000.
LMAX Group market strategist Joel Kruger told Cointelegraph how a Bitcoin price breakout to $40,000 could come about: “We don’t see anything specific going on with the price of Bitcoin to start the week other than the usual run of steady demand from medium- and longer-term players looking to build exposure.
“If anything, Bitcoin has actually been more contained of late relative to currencies and risk assets, which have been in notable rally mode on expectations for a more accommodative shift in Fed policy in the aftermath of a run of softer US economic data. Technically speaking, it would take a break above $36,000 to really turn heads and trigger the next wave of bullish momentum.”
The illiquid supply of Bitcoin remains on pace for monthly inflows for another year, with the net rise of illiquid Bitcoin at 71,000 BTC per month.
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