The circulating supply of Bitcoin (BTC) continues to shrink. In the past 6 months, only 36% of the circulating Bitcoins on the chain have been moved.
According to the data shared by Glassnode, an on-chain encrypted data aggregator, on March 21, during the peak of the 2017 bull market, 50% of the Bitcoin supply was in circulation in the first 6 months.
In a bull market, the supply of old Bitcoin moves more widely. This increases the relative supply of new bitcoins in the network.
During the previous peak Bitcoin price, 50% of the Bitcoin supply was in circulation in the first 6 months.
We are currently significantly below this level.
-glassnode (glassnode) March 21, 2021
The data shows that very few long-term investors are willing to sell bitcoin at the current price level, which indicates that the “whales” of bitcoin are holding bitcoin for the price increase. The current bull market trend may still be very large. Expansion capacity.
Comparing the old and new bitcoins moving on the chain may give us some insight into market sentiment. When the price reaches a new high, it is natural for the old bitcoins to be sold for profit, but this trend seems to be waning, indicating that investors are more willing to hold their assets.
The current supply of Bitcoin is 18.66 million, accounting for 88.85% of the upper limit of 21 million. There are also reports that about one-fifth of bitcoins are lost or stolen, which indicates that the actual circulating supply of bitcoins may be much smaller, thereby enhancing the scarcity of bitcoins.
On the same day, the Glassnode data shared by well-known crypto analyst Willy Woo also pointed out that the market value of Bitcoin has exceeded $1 trillion, of which 7.3% of Bitcoin changed hands, and the market value of Bitcoin reached 13 figures.
These data showing UTXO realized price distribution (URPD) track the unspent transaction output of Bitcoin at different prices. Woo said:
“This is a fairly reliable price verification; $1 trillion has already been strongly supported by investors. I want to say that we will most likely never see the market value of Bitcoin below $1 trillion again.”
He added: “URPD is a price discovery lens that can show the price of Bitcoin the last time it moved, assuming they were bought by investors.”
However, Woo pointed out that the movement of Bitcoin on the chain does not always indicate an active transaction, as exchanges regularly transfer digital assets internally.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.