Bitcoin stock level ends when ETFs set new $100K BTC price target
Bitcoin (BTC) is ending a year-long rally that began at the end of the 2022 bear market, according to reports.
On-chain analytics firm Glassnode's figures show that BTC in storage addresses is declining for the first time since the first quarter of 2023.
Bitcoin wallets start pouring BTC
Bitcoin hitting an all-time high this week may have sparked a brisk selloff, but behind the scenes, hoarders are busy taking profits.
According to Glassnode, coins held in so-called “storage addresses” – wallets with no outgoing transactions and at least two “non-dust” incoming – are decreasing.
From February 11, the reversal began to break with a one-year tradition and came as BTC/USD returned to $48,000 – a long-term trading high.
Since then, the collection accounts have fallen by 2.6% to 3,176,293 BTC ($212 billion) and show no sign of recovery.
Zooming in, the phenomenon appears far from bearish.
Despite declining exposure, wallets have historically spent a long time collecting coins at a discount – selling only at the beginning, not the end, of parabolic trends.
Looking at balances throughout Bitcoin's existence, the broader accumulation trend since mid-2018 remains entrenched, in contrast to the sharp decline up to that point, in 2018. Since its launch in 2016, just as Bitcoin began its run to its old $20,000 all-time high.
$100,000 worth of BTC this year?
As Cointelegraph reports, the launch of US spot-bitcoin exchange-traded funds (ETFs) in January had a notable impact on supply volatility.
RELATED: El Salvador's Bitcoin Holdings Record $164M As BTC Gains Pass $50M
Steady buying pressure has now led to unprecedented events, including hitting an all-time high before the block subsidy was halved.
Timothy Peterson, founder and investment manager at Ken Island Alternative Advisors, analyzed the current trajectory and suggested that demand for ETFs could grow to six figures for Bitcoin as early as 2024.
“If this Bitcoin spot ETF goes ahead with approval, it looks like a rally has started that will keep $BTC at $100K until October 2024,” he told subscribers on X on March 7.
The accompanying chart compares the unspent transaction output (UTXO) numbers to BTC price performance, showing a 0.34% daily growth.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
