Data comes from glass node Bitcoin (BTC) is shown to be in accumulation mode, with its available supply reaching new all-time lows. According to the report, Bitcoin’s illiquidity and long-term holder base increased.
As Bitcoin supply tightens, available Bitcoin is being purchased by smaller, long-term holding entities.
According to Glassnode’s analysis, the accumulation of Bitcoin among the majority of the investor community and the bullish belief among long-term holders is equivalent to investors gobbling up “92% of the newly mined supply.”
“If we only isolate entities at the smaller end of the scale, such as Xiazi (
Physical Bitcoin balances vary with issuance. Source: Glassnode
Against the backdrop of smaller entities gobbling up Bitcoin’s minted supply, long-term holders have reached new highs relative to short-term holders, something not seen since July 2023. In addition to the stable proportion of long-term holders, the supply of short-term holders has also decreased to an all-time low.
Long-term vs. short-term Bitcoin holders ratio. Source: Glassnode
The combined effect is a tightening of the supply of BTC available for purchase, which could help keep Bitcoin prices above $34,000 and provide strong support above $30,000.
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Comments from Cointelegraph, market strategist at LMAX GroupJoel Kruger explains how Bitcoin price topped $40,000,
“We didn’t see any concrete price movement in Bitcoin at the start of this week, other than steady demand from mid- to long-term players looking to build exposure. If anything, Bitcoin’s price is rising relative to currencies and risk assets. The currency has actually taken more control of late, with expectations for a more accommodative shift in Fed policy following soft U.S. economic data, while currencies and risk assets have been in significant rally mode. Technically, a breakout is needed It would take $36,000 to really turn things around and trigger the next wave of bullish momentum.”
Illiquid tokens with limited Bitcoin supply are often a bullish market indicator. Illiquid Bitcoin supply continued to flow in on a monthly basis over the next year. Illiquid Bitcoin has seen a net monthly increase of 71,000 BTC.
related: Transaction flow gap hits 10K BTC – 5 things to know about Bitcoin this week
The growing confidence in Bitcoin amid tight supply is not limited to smaller entities. Almost all groups of entities have been increasing their Bitcoin holdings so far this year, and the chart below illustrates this action well.
Bitcoin accumulation for all groups. Source: Glassnode
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
