According to data from Glassnode, the supply of Bitcoin (BTC), which is in storage mode, has hit a new historic low. According to the report, the illegal supply of Bitcoin and the pool of long-term holders have risen.
As the supply of Bitcoin continues to tighten, available BTC is being bought by small and long-term holding entities.
According to Glassnode's analysis, the bitcoin holdings among the majority of the investor pool and the mass judgment of long-term holders are equal to what investors collect from “92% of the newly minted supply.”
If we exclude only the bodies such as shrimp at the end of the small scale
The entity's Bitcoin balance is exchanged with the withdrawal. Source: Glassnode
Highlighting Bitcoin's combined supply on the back of smaller entities, long-term holders hit new highs, along with short-term holders, something not seen since July 2023. to an all time low.
The ratio of long-term and short-term Bitcoin holdings. Source: Glassnode
The combined effect is creating a tightening of the supply of BTC available for purchase, which is likely to keep the price of Bitcoin above $34,000 and provide strong support above $30,000.
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In comments to Cointelegraph, LMX Group market strategist Joel Krueger explained how Bitcoin's price will reach $40,000.
“We will not see anything different in the price of Bitcoin to start the week if it is not normal demand from medium and long-term players looking to build exposure. If anything, Bitcoin has actually held up against currencies and risk assets of late, staying in familiar rally mode on expectations of a more dovish shift in Fed policy following a run of soft US economic data. Technically speaking, it would take a break above $36,000 to turn heads and trigger the next wave of bullying.
Illegitimate coins with a limited supply of Bitcoin are often a high market indicator. Illegal Bitcoin Supply Continues Fast For Another Year For Monthly Income. The net increase of Illiquid Bitcoin is 71,000 BTC per month.
Bitcoin Illegal Supply Change. Source: Glassnode
Related: Exchange Flow Gap Hits 10K BTC – 5 Things to Know in Bitcoin This Week
Growing confidence in Bitcoin amid a supply crunch isn't limited to smaller entities. Almost every set of legal entities is increasing their Bitcoin holdings year by year, an action that is well illustrated in the chart below.
A collection of Bitcoin on all the same people. Source: Glassnode
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.
