Bitcoin’s liquid supply continues to decline, with only 36% of BTC in circulation being transferred to the network in the past six months.
According to data shared by the on-chain cryptographic data aggregator Glassnode on March 21, the 2017 bull market peak saw 50% of Bitcoin supply circulating in the previous six months.
In bull markets, old currencies tend to move more. This increases the relative supply of younger currencies on the network.
In the previous $ BTC tops, about 50% of the #Bitcoin the supply was less than 6 months.
We are currently significantly below that level (36%) .https: //t.co/D40RJ5FlAA pic.twitter.com/OIOnnChpk0
– glassnode (@glassnode) March 21, 2021
The data shows that few long-term investors are tempted to sell their Bitcoin at current price levels, suggesting that Bitcoin whales are fighting for higher prices and that the current upward trend could have much more to come.
Comparing the age of BTC transferred to the network can offer some insight into market sentiment. When prices reach new peaks, it is natural for older currencies to be sold for profit, but this trend appears to be slowing – suggesting that investors prefer to keep their assets.
The current offer of BTC is 18.66 million or 88.85% of the 21 million limit. It was also reported that about a fifth of all BTC was lost or stolen, suggesting that the actual supply of Bitcoin in circulation could be considerably less, increasing the scarcity of the asset.
Glassnode Contact info shared The popular crypto analyst Willy Woo on the same day also noted significant activity on the network, while Bitcoin’s market capitalization is above $ 1 trillion, with 7.3% of BTC’s supply changing hands, while the asset boasts a capitalization of 13 digits.
The data, which illustrates UTXO Realized Price Distribution (URPD), tracks Bitcoin’s unspent transaction exits at different prices. Woo declared:
“This is a very solid price validation; $ 1Q is already heavily supported by investors. I would say there is a good chance that we will never see Bitcoin below $ 1Q again. “
“URPD is a lens for price discovery, showing the price when the coins were last moved, assuming they were bought by investors,” he added.
However, Woo noted that chain currency movements do not always indicate active trading, with exchanges regularly changing their digital assets internally.