Is This Bitcoin Metric 5-Year Low, But Is It Bullish?
TL; DR
Bitcoin supply is at a 5-year low of around 2.29 million BTC. Since September 1st, the percentage of BTC supply has decreased from 5.99% to 5.73%, reducing the selling pressure. Whales are hoarding BTC, controlling more than 66% of the circulating supply, and 1% of Bitcoin addresses own about 19.3 million coins.
A sign of cruelty?
The supply of Bitcoin (BTC) on cryptocurrency exchanges has recently dropped to record levels. In the following lines, we will consider whether this can be considered a signal for future price increases.
According to blockchain data platform Glassnode, BTC has the most leverage in crypto marketplaces. He went back to a 5-year low of approximately 2.29M BTC. By comparison, the figure was over the 3.2M mark in early 2020.
The behavioral analysis platform Santiment also pointed to the development, the supply of BTC on the exchange dropped from almost 6% in early September to 5.73%. Additionally, some whales made transactions worth hundreds of millions shortly before the previous digital asset surged above $28,000 on October 2.
🐳 There were 4 transactions worth between $187M and $346M before #Bitcoin broke above $28K for the first time in 6 weeks. Since September 1st, the supply of $BTC has dropped from 5.99% to 5.73%, which is a further good sign. 👍 pic.twitter.com/5vCsksuUDu
— Santiment (@santimentfeed) October 2, 2023
Exchange flows are considered aggressive for asset prices as they reduce selling pressure and imply long-term losses for investors.
The whales were stocking up.
Recently as CryptoPotato reportedSharks and whales have been buying BTC at a fever pitch over the past two months and currently control more than 66 percent of the mainstream digital asset's circulation.
It's also worth mentioning that 1% of Bitcoin addresses hold around 19.3 million coins (currently there are around 19.5 million in production).
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