Bitcoin supply held by long-term holders hits all-time high — Research
Bitcoin's recent surge to a 2023 high is supported by on-chain and sentiment data.
Glassnode's data indicates that Bitcoin is currently in an accumulation pattern, with its available supply reaching a new historical low. The report highlights the increased accumulation of Bitcoin by smaller, long-term holding entities, with these entities acquiring "92% of the newly mined supply." This trend has led to a significant tightening of available BTC supply.
Moreover, the data shows that long-term holders have reached new highs compared to short-term holders, a situation not seen since July 2023. The short-term holder supply has diminished to all-time lows. These combined factors have resulted in a limited supply of BTC available for purchase, which may be contributing to keeping Bitcoin's price above $34,000 and providing strong support above $30,000.
This tightening of supply and growing confidence in Bitcoin is seen across various investor cohorts, making it a bullish market indicator. Illiquid coins, given Bitcoin's finite supply, are typically associated with a bullish market. The illiquid Bitcoin supply has seen a net increase of 71,000 BTC per month for another year.
The data reflects the accumulating behavior of different investor cohorts, indicating strong support for Bitcoin's price. This growing confidence and scarcity factor are contributing to Bitcoin's recent price stability and support at higher price levels.
Analysts suggest that Bitcoin may need to break above $36,000 to trigger the next wave of bullish momentum. This data suggests a positive outlook for the cryptocurrency and its long-term potential for investors.