Bitcoin Supply Reaches Historic Lows
The circulating supply of bitcoin is historically tight, with coins held by long-term investors at an all-time high. According to Glassnode data, existing bitcoin investors are increasingly unwilling to part with their holdings, leading to impressive rates of accumulation taking place.
Long-Term Holders are Accumulating
In a Wednesday blog post entitled “The Tightening of Supply,” Glassnode data showed the proportion of circulating supply of bitcoin held for longer than one year is hovering around all-time-high levels. The long-term holder metric is at an elevated level for several BTC age bands. 68% of the circulating supply has been held untouched for over one year. The metric for coins held for over five years now sits at almost 30% of the total circulating amount.
Illiquid Supply Increasing
The illiquid supply metric, which measures the amount of supply held in wallets with minimal history of spending, is also at an all-time high of 15.4 million bitcoin. The monthly rate of change for illiquid supply is within a multi-year period of net gains, currently increasing at a rate of over 71,000 bitcoin per month.
Divergence Between Long and Short-Term Investor Cohorts
“A powerful divergence continues to form between long-term holder supply, and short-term holder supply, which is at effectively all-time lows,” according to Glassnode. The spending behavior of short-term bitcoin holders has changed following BTC’s rally above the key $30,000 level. The market character has shifted since the rally, with investor cost basis for various cohorts suggesting that this $30,000 level is an important zone of interest for the bulls.
Hot Take
The world’s largest cryptocurrency by market capitalization increased by over 1.3% in the past 24 hours to $35,272 at 9:48 a.m. in New York.
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