Bitcoin BTC/USD 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.
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%.
Bitcoin’s market capitalization stood at $1.07 trillion at press-time.
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.
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.”
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
