Investors continued to move bitcoins into wallets for long-term storage at the same time as the price of the cryptocurrency rose. This is evidenced by data from the analytical company Glassnode, according to which the number of bitcoins in liquid wallets has decreased by 270,000 BTC ($ 9 billion) over the past month.
“This chart of Bitcoin is more important than the price chart,” writes analyst Luc Martin. – Bitcoin offer is being withdrawn from exchanges at a record pace. Historically, bullish cycles ended AFTER liquid supply began to increase. This has not happened yet. ”
The company’s observations indicate that Bitcoin’s liquid supply has been steadily declining over the past nine months. It currently accounts for 21.3% of the cryptocurrency issue volume. Thus, almost 80% of the 18.6 million BTC issued to date are believed to be unavailable for instant sale in the market.
According to Glassnode’s classification, a bitcoin wallet is considered illiquid if less than 25% of the incoming assets have been withdrawn from it during its entire existence. On the other hand, wallets are considered highly liquid if they store less than 25% of the coins they receive.
Of the 3.9 million highly liquid BTC in Glassnode’s statistics, 61% or 2.38 BTC are on centralized exchanges. Their number also decreases over longer periods – according to CryptoQuant, exchange balances in bitcoin have decreased by 13.8% since July.
At the same time, the number of bitcoins held by public companies and other institutional investors is growing. According to Bitcoin Treasuries, these companies currently hold 1,216,224 BTC, or 5.79% of all Bitcoin issued. The largest investor of them is the Grayscale company, in whose bitcoin trust half of this volume is concentrated. Data from investment firm SwissBorg also indicates that institutional investors, on average, bought 2-3 times more bitcoins in the second half of 2020 than miners issued per day.
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