Bitcoin (CRYPTO: BTC) is trading near record-highs at $57,726.97, yet investors are still holding on to the apex cryptocurrency undeterred by shrink supply, according to blockchain data and intelligence provider Glassnode.
What Happened: BTC is still trading 6.65% lower than the all-time high of $61,683.86 reached on Mar. 13.
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Glassnode pointed out on Twitter that, in bull markets, “old coins” move more which in turn increases the relative supply of younger coins.
The tweet also contained a chart that tracked BTC supply that indicated at previous highs for the cryptocurrency supply touched 50% levels, but the supply levels currently stand at 36%.
In bull markets old coins tend to move more. This increases the relative supply of younger coins in the network.
— glassnode (@glassnode) March 21, 2021
At previous $BTC tops, around 50% of the #Bitcoin supply was younger than 6 months.
We are currently significantly below this level (36%).https://t.co/D40RJ5FlAA pic.twitter.com/OIOnnChpk0
Bitcoin’s market capitalization stood at $1.07 trillion at press-time.
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Why It Matters: The chart is indicative of the fact that long-term investors — known as hodlers in Bitcoin parlance — are hesitant to sell their coins at current price points and are waiting for a further run-up.
See Also: Bitcoin Could Boom 430% but Ethereum May Still Steal its Thunder
On-chain analyst Willy Woo also posted Glassnode data separately which indicated that 28.7% of Bitcoin supply occurred at prices above $19,700, which he said was the all-time high of the last macro-cycle.
It's only been 3 months since Bitcoin broke the $19.7k all-time-high of the last macro cycle.
— Willy Woo (@woonomic) March 21, 2021
But already 28.7% of bitcoins moved at prices above $19.7k. pic.twitter.com/izA9CMzWYc
The analyst said in another tweet that the $1 trillion market cap of BTC was “strongly supported by investors.”
“I'd say there's a fair chance we'll never see Bitcoin below $1T again.” However, Woo also had a word of caution.
See Also: Analyst Who Predicted $50,000 Bitcoin Sees Key Metric Indicating 'March To $100,000'
“Be aware coin movements are not always from purchases. For example exchanges and users regularly move coins internally.”