According to data shared by on-chain crypto data aggregator Glassnode on March 21, the bull market peak of 2017 saw 50% of Bitcoin’s supply circulating in the previous six months.
In bull markets, old coins tend to move more. This increases the relative supply of younger coins in the network.
We are currently well below this level (36%) .https: //t.co/D40RJ5FlAA pic.twitter.com/OIOnnChpk0
– glassnode (@glassnode) 21 mars 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 looking for higher prices and the current uptrend may have a lot more to do with it. to do.
Comparing the age of BTC moved on the chain can offer some insight into market sentiment. When prices hit new highs, it’s only natural for older coins to be sold for profit, but this trend appears to be on the downside – suggesting that investors prefer to hold onto their assets.
The current supply of BTC is 18.66million or 88.85% of the 21million limit. It has also been reported that around one-fifth of all BTC has been lost or stolen, suggesting that the actual circulating supply of Bitcoin could be significantly lower, reinforcing the scarcity of the asset.
Glassnode data sharing On the same day, well-known crypto analyst Willy Woo also noted significant activity on the channel as Bitcoin’s market cap exceeded $ 1 trillion, with 7.3% of the BTC supply changing hands while the asset had a 13-digit capitalization.The data, which illustrates the distribution of prices realized by UTXO (URPD), tracks the outflow of unspent transactions from Bitcoin at different prices. Woo said:
“It’s a pretty solid price validation; $ 1T is already strongly supported by investors. I would say there’s a good chance we’ll never see Bitcoin below $ 1T again. “
“URPD is a lens in price discovery by showing the price the last time coins were moved assuming they were bought by investors,” he added.
However, Woo noted that on-chain coin movements don’t always indicate active trading, with exchanges regularly transferring their digital assets internally.