The liquid supply of Bitcoin is still shrinking, and in the last six months only 36% of the BTC has been put into circulation.
According to data shared by crypto data collector Glassnode on March 21, the peak of the 2017 bull market spread 50% of Bitcoin’s supply within the previous six months.
At bull markets, old coins move more. This increases the relative supply of younger coins in the network.
By previous $ BTC tops, about 50% of the # Bitcoin the offer was younger than 6 months.
We are currently significantly below this level (36%). Https://t.co/D40RJ5FlAA pic.twitter.com/OIOnnChpk0
– glasnode (@glassnode) 21 March 2021
The data shows that few long-term investors are tempted to sell their Bitcoin at current price levels, suggesting that Bitcoin’s whales are raising higher prices and that the current bull trend may go much further.
Comparing with the age of BTC transferred to the chain can provide some insight into market sentiment. When prices peak again, it is natural that older coins will sell profitably, but this appears to be declining, suggesting that investors would rather hold on to their assets.
The current offer of BTC is 18.66 million or 88.85% of the limit of 21 million. It has also been reported that about one-fifth of all BTC has been lost or stolen, suggesting that the actual spread of Bitcoin may be significantly lower, which may amplify the scarcity of the asset.
Glassnode data shared by the popular crypto analyst, Willy Woo, also noticed significant activity in the chain on the same day, while Bitcoin’s market capitalization amounted to more than $ 1 billion, with 7.3% of BTC’s changing ownership, while the asset boasts a 13-digit capitalization.
The data, which illustrates the UTXO Realized Price Distribution (URPD), tracks Bitcoin’s unspent transaction outputs at different prices. Woo said:
‘It’s pretty solid price validation; $ 1T is already strongly supported by investors. I would say there is a reasonable chance that we will never see Bitcoin below $ 1 a ton again. ”
“URPD is a lens in price tracking by indicating the price when coins last move, if they accept that it is bought by investors,” he added.
However, Woo noted that currency movements on the chain do not always indicate active trading, while exchanges regularly shift their digital assets.