Bitcoin supply continues to shrink and only 36% of BTC in circulation has been moved to the top of the chain in the past six months.

At the peak of the 2017 beef market, 50% of Bitcoin offerings had traded in the previous six months, according to data provided by the encrypted data collector Glassnode on March 21.

The data shows that few long-term investors are inclined to sell their bitcoins at the current price level, indicating that bitcoin whales tend to have higher prices and that the current uptrend may last longer.

Comparing the lifetime of BTC moving along the chain can provide insight into market sentiment. When prices reach new highs, it is natural for old currencies to be sold for profit, but this trend appears to be reversing, indicating that investors prefer to hold their assets.

Bitcoin’s current supply is 18.66 million, or 88.85% of the limit of 21 million. It is also reported that about a fifth of all BTC has been lost or stolen, indicating that the actual amount of Bitcoin in circulation could be much less, exacerbating the underlying shortfall.

Glassnode data, which was shared by famous crypto analyst Willie Wu on the same day, also noted massive network activity, while Bitcoin’s market cap exceeded $ 1 trillion, with 7.3% of Bitcoin’s supply changing, while the asset has 13 sizeable capital.

The data, which shows the UTXO Realized Price Distribution (URPD), tracks the unused output of Bitcoin transactions at various rates. Wu said:

“This is a very strong confirmation of price; $ 1 trillion is already supported by investors. I would say there is a good chance that we will never see Bitcoin under $ 1 trillion again.”
He added, “URPD is a target price by showing the price of the last time the currencies were transferred, assuming that investors bought them.”

However, Wu noted that currency movement in the chain does not always indicate active trading, as exchanges regularly exchange their digital assets domestically.

Source: CoinTelegraph

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