BTC market capitalisation at 1 trillion. US dollar: Long-term investors continue to HODL
Only 36 percent of bitcoin supply has moved in the last 6 months. This compares to 50 percent in the last bull run.
Liquid bitcoin supply continues to shrink. In the last six months, only 36 percent of circulating BTC moved on the chain.
According to data from Bitcoin Era on-chain crypto data aggregator Glassnode on 21 March, at the peak of the 2017 bull market, 50 percent of bitcoin supply was circulating in the previous six months.
The data shows that few long-term investors want to sell their bitcoin at the current price. This suggests that bitcoin whales are hoping for higher price and the current bull trend could go much further.
Comparing the age of the BTC moving on the chain gives a good insight into the market sentiment. When prices reach new highs, it is natural that older coins are sold at a profit. But this trend seems to be decreasing. This suggests that investors are more likely to hold on to their assets.
The current BTC supply is 18.66 million, or 88.85 percent of 21 million. It was also reported that about one-fifth of all BTC had been lost or stolen. This suggests that the actual circulating supply of bitcoin could be much lower.
This in turn could exacerbate the scarcity of the asset
Data from Glassnode, uploaded by popular crypto analyst Willy Woo on the same day, also shows considerable on-chain activity. Bitcoin’s market capitalisation was over 1 trillion. US dollars. 7.3 per cent of the BTC supply was traded, while the asset was in the 13-digit range.
The data, which tracks the UTXO Realised Price Distribution (URPD), tracks Bitcoin’s unused transactional supply at different prices. Woo explained:
„This is pretty solid price validation; 1 trillion. US dollar already has strong investor support. I would say the odds are that Bitcoin will never go back below 1 trillion. US dollars.“
„URPD is an insight into price discovery by showing the price when coins last moved. Assuming they were bought by investors,“ he added.
However, Woo noted that the movement of coins on the chain does not always indicate active trading, as exchanges regularly shift their digital assets internally.