Understanding the November BTC Rally
The crypto world is abuzz with excitement, especially after the impressive Bitcoin rally in November. The king of cryptocurrencies soared to eye-watering price levels, testing the all-time high. But wait, there’s more than just price action to analyze!
Movements in Bitcoin Supply
During this intense price action, over 1% of Bitcoin’s total supply saw a shift from long-term storage. You know those coins that have been quietly collecting dust? Well, they decided to party! According to Unchained Capital’s proprietary metric known as “hodlwaves,” about 15% of Bitcoin that had been nestled in unchanged wallets for five to seven years finally decided to make a move during November.
A Deep Dive into Long-Term Storage
It’s astonishing to think about the long-term holders. As of the start of November, a staggering 61.43% of Bitcoin hadn’t moved for over a year. Folks, that’s a serious commitment! But with the price soaring from $13,700 to $19,670, even the staunchest HODLers were tempted to break their silence.
Shifts in Coin Activity
As the excitement unfolded, the share of Bitcoin previously dormant for two to three years fell from 12.20% to 11.58%. That’s not just a minor blip; it’s nearly a 5% decline! Even the ‘still waters run deep’ crowd took some action; coins that had lazily lounged between one to two years dropped by 4% as well.
Increased Stagnation for Veteran Bitcoins
Interestingly, Bitcoin that had been sitting still for seven years saw a slight uptick. Perhaps it’s the old dogs of the Bitcoin world wanting to stay put a little longer. Meanwhile, short-term transaction activity surprisingly dropped. The portion of supply moving between one day and one week sank from 3.72% to 2.94%. It seems everyone was too busy checking their wallets and screaming in excitement to send or receive Bitcoin!
Wallet Activity Soars
Adding more fuel to this thrilling month, crypto data aggregator Glassnode reported nearly 19.6 million active Bitcoin addresses during November. This was the second-highest number of active wallets in Bitcoin’s storied history, just shy of December 2017’s peak of 21.6 million. Talk about a crowded party!
A Record-Setting Monthly Candle
Let’s not forget about the meteoric rise of that monthly candle. November 2020 recorded the largest monthly movement (candle) in Bitcoin’s history when it skyrocketed from roughly $13,800 to $19,700, a 42% increase. If this were a movie, it would be part thriller, part action-adventure, with a touch of comedy in the form of frantic traders refreshing their screens!
Conclusion: A Month to Remember
To wrap it up, November wasn’t just another month in the Bitcoin lifecycle. It was a significant moment, filled with activity as BTC made major moves both on price and supply. It’s a reminder that in the world of cryptocurrencies, every month has the potential to amaze us, but November 2020 might just hold its own special place in the history books.
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