Bitcoin investors seem to have adopted a “wait-and-see” approach lately, as evidenced by a jaw-dropping 85% of Bitcoin’s supply remaining untouched for the past three months. Talk about commitment! This inactivity represents a monumental spike that has even caught the attention of on-chain analytics guru, Glassnode, in its weekly report from the trenches.
The Accumulation Effect: Who’s Stockpiling?
In the wild world of Bitcoin, the folks who are called “long-term holders” (LTHs) seem to be on a mission to hoard as many coins as possible. These diamond-handed individuals keep their BTC wallets locked tight, with only a meager 6,500 BTC moving out each day. At this rate, we can only assume they’re plotting a grand utopia where no coins are exchanged and only speculative emojis are traded!
Exchange Withdrawal Madness
To add a sprinkle of drama to the mix, centralized exchanges are feeling the burn as the BTC supply there plummets to a record low of 12.9%. Last week alone, more than 5,000 BTC (worth approximately $338.6 million, if you’re counting) was withdrawn from these venues. Considering people are voluntarily yanking their coins away from exchanges, it’s safe to infer that they’re tucking them away in secure storage — possibly under their virtual mattresses.
The Quiet Before the Bullish Storm?
According to Glassnode, this could be the calm before a bullish frenzy, as the market enters a quiet accumulation phase characterized by low activity and substantial exchange outflows. If history has taught us anything, this eerily quiet behavior often precedes volcanic price surges, making Bitcoin bulls giddier than kids in a candy store before a sugar rush!
Historical Precedents: Déjà Vu All Over Again
Looking back at the glorious days of yore, we find that the current accumulation trend resembles the lead-up to April’s spectacular all-time highs. Just for a little reminiscing, the share of Bitcoin held by LTHs hit 80.6% back in August 2020. Soon after that, BTC reached around $66,000 in April 2021, sending everyone’s hearts racing. Could we be on the cusp of another monumental spike?
Final Thoughts: The Future of Bitcoin
As Bitcoin happily bounces around the $67,000 mark again, edging closer to the market capitalizations of giants like Tesla and Facebook, many are left wondering: is this just the beginning? With HODLers firmly grasping their coins, the market may be sitting on a powder keg — and with a price of $85,000 being whispered around the trading circles, we’re all just waiting to see who lights the match!
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