Bitcoin Demand Shifts: Glassnode Highlights U.S. Recovery and Asia’s Lead
The Glassnode report reveals the following key points:
- Asia-based exchanges saw net inflows of bitcoin (BTC) in 2023, while U.S.-based exchanges saw net outflows, indicating weaker relative demand from U.S. investors compared to those in Asia.
- A wave of spot bitcoin exchange-traded fund (ETF) filings in the U.S. suggests growing institutional interest in the country.
- Glassnode estimates that the “hot supply” of bitcoin, which represents the most active portion of circulating supply, is around 511,000 BTC, with an estimated total of 983,000 BTC (worth $29.5 billion) being actively in play.
- The ongoing transfer of wealth from investors with high time preferences to long-term holders (HODLers) indicates a growing illiquidity, a pattern seen in previous Bitcoin bull markets.
- Glassnode highlights that the size of the spot and derivatives markets is similar, with 983,000 BTC being able to absorb the remaining Mt. Gox bankruptcy coins and U.S. government-seized coins.
“Hot Take”
The Glassnode report suggests that U.S. demand for bitcoin is recovering with the proposal of new ETFs. The limited actively circulating bitcoin indicates that new inflows could easily absorb future supply shocks. Recent trends on the blockchain indicate an accumulation mentality, setting the stage for a renewed bull market.
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