data from glass node Bitcoin (BTC) is in an accumulation pattern, suggesting that the available supply has reached an all-time low. According to the report, Bitcoin’s supply is illiquid and the number of long-term holders is increasing.
As Bitcoin supply tightens, available BTC is being purchased by small long-term holders.
According to Glassnode analysis, Bitcoin accumulation among the majority investor population and bullish belief among long-term holders has led investors to gobble up “92% of newly mined supply.” There will be.
“If we isolate only small-scale entities, such as shrimp (less than 1 BTC), crabs (1-10 BTC), and fish (10-100 BTC), we can see that their accumulation patterns are very important. Total balance growth for the subgroup now represents 92% of newly mined supply and has continued to rise since May 2022.”
Long-term holders are reaching new highs relative to short-term holders, not seen since July 2023, as small entities cannibalize Bitcoin’s mint supply. It is an event. In addition to the strong proportion of long-term holders, the supply of short-term holders has also declined. to an all-time low.
The combined effect is that the supply of purchasable BTC is tight, which is likely keeping Bitcoin price above $34,000 and providing strong support above $30,000.
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Comment from LMAX Group Market Strategist on Cointelegraph Joel Krueger explained how a breakout in Bitcoin price to $40,000 could occur.
“Other than the usual stable demand from medium- to long-term players looking to build exposure, we don’t see anything tangible happening to Bitcoin prices at the beginning of the week. Rather, it has been subdued, with a notable uptrend on expectations that Fed policy will turn more accommodative following a series of weak US economic data. A breakout of $36,000 would be needed to trigger a wave of bullish momentum.”
Illiquid coins with a limited supply of Bitcoin are usually bullish indicators for the market. The illiquid Bitcoin supply will continue for another year at a monthly inflow rate. The net increase in illiquid Bitcoin is 71,000 BTC per month.
Related: Exchange flow gap reaches 10,000 BTC — 5 things to know about Bitcoin this week
The growing confidence in Bitcoin amid tight supply is not limited to small businesses. Almost every corporate cohort has increased their Bitcoin holdings since the beginning of the year, and this movement is well illustrated in the graph below.
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.