If you are a BTC price speculator or new to the market, Bitcoin (BTC) is becoming scarcer than ever.
this The latest data Data from on-chain analytics firm Glassnode shows that a record portion of the available BTC supply is locked in long-term storage.
Number of long-term Bitcoin holders hits record high
Long-term Bitcoin holders (LTH) control over 76% of the BTC supply, more than at any time in history.
Although supply increases with each block, the market share of the low-time-preference Bitcoin investor group is at an all-time high in percentage terms.
As Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriole Investments, noted, this achievement marks a first in Bitcoin’s life cycle.
“Today, 76.2% of the Bitcoins in the Bitcoin network are locked by long-term holders, setting a record high,” he wrote October 18, X day.
“Breaking the record set in 2015. Less liquidity supply means the same people are bidding on fewer tokens. You do the math.”
Edwards mentioned the ripple effect recorded by LTH – coins becoming increasingly scarcer for use by other market participants.
The accompanying Glassnode chart shows that LTH significantly increased its BTC exposure starting in mid-2021, “holding” throughout the subsequent bear market. Only in the brief period thereafter did the percentage of supply they controlled decline.
Meanwhile, Edwards added in private comments to Cointelegraph that while there are fluctuations in demand for Bitcoin itself, the trend trajectory is clear.
“I’m not saying demand is the same as in 2015. What I am saying is that for the same demand, less supply means prices have to go up (supply and demand economics),” he explained.
“But in reality, demand has grown a lot since 2015, so that should put more upward pressure on the price this cycle. We’ve never had Bitcoin supply so tight with the halving. “
BTC speculators stay on the sidelines
As Cointelegraph reported, the other end of the spectrum for LTH – short-term holders (STH) or speculators, has also attracted major interest from market watchers.
Related: BTC Price Model Hints at Target of $130,000 After Bitcoin Halving in 2024
Real prices for the STH group have been supportive for much of the year, and new data this week shows that trend is still at play.
The analysis says that STH’s realized price (the price at which all STH-owned tokens were last moved) is just under $27,000, and BTC/USD’s breakout of that price this week is an important bullish impetus.
Data comes from Cointelegraph Markets Pro and trading view shows Bitcoin holding support at $28,000 after hitting a two-month high.
Meanwhile, BTC exposure among STH entities was at historically low levels in August, something that has drawn attention.
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.
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