Data from Glassnode programme Bitcoin is in accumulation mode, with available supply reaching new all-time lows. The report states that Bitcoin’s illiquid supply and long-term holders are increasing.
As supply tightens, available Bitcoin is being purchased by smaller, long-term institutional holders.
According to Glassnode analysis, most investor groups are accumulating BTC, and optimism among long-term holders has led investors to account for “92% of newly mined supply.”
Change number Physical Bitcoin Balance vs. quantity release | Source: Glassnode
As smaller entities accumulate the mined Bitcoin supply, the number of long-term holders (LTH) compared to short-term holders (STH) reaches new highs not seen since July 2023 . In addition to stable LTH rates, STH supply has also fallen to an all-time low.
holder ratio Bitcoin Long Term and Short Term | Source: Glassnode
The combined effect results in a tight supply of Bitcoin available for purchase. This could help keep Bitcoin price above $34,000 and provide strong support above $30,000.
Joel Kruger, market strategist at LMAX Group, explained in comments how Bitcoin price could break through $40,000:
“We didn’t see any specific changes in Bitcoin prices at the start of the week, aside from the usual steady demand from mid- to long-term players looking to increase exposure. If anything, Bitcoin is actually trading higher than Other currencies and risk assets are more restrained. These assets are in clear bullish mode as a series of weak U.S. economic data leads to expectations of a more accommodative Fed policy. Technically, a break above $36,000 is needed to truly reverse the situation and trigger The next bullish wave.”
Given that Bitcoin has a limited supply, an illiquid coin is often a bullish market indicator. Illiquid Bitcoin supply continued to accelerate monthly inflows over the next year. Illiquid Bitcoin has seen a net monthly increase of 71,000 BTC.
BTC’s Illiquid Supply Changes | Source: Glassnode
Growing confidence in the king of cryptocurrencies amid tight supply isn’t limited to smaller entities. Almost all groups have increased their holdings so far this year, and the chart below clearly illustrates this move.
Accumulate Bitcoin in all pools | Source: Glassnode
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According to Cointelegraph