- Bitcoin’s foreign exchange balance was just 11.5% of the total circulating supply.
- Dormant supply hit new highs, with multiple age groups suggesting increased HODLing activity.
Bitcoins[BTC] The supply of liquidity dropped to a new level, which caused concern among investors looking to get their hands on the king coin. According to blockchain analysis firm Glassnode, the supply of BTC on trading platforms fell to a 5-year low on July 15.
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📉 #Bitcoin $BTC Balance on exchanges just hit a 5-year low of 2,250,825.538 BTC
View metric:https://t.co/9vOOAmwh32 pic.twitter.com/3CHoAvtyQY
— Glassnode Alerts (@glassnodealerts) July 15, 2023
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Long-term investors stay away
About 2.5 million BTC coins existed on centralized exchanges, accounting for just 11.5% of the total circulating supply. Since the March 2020 highs, exchange supply has progressively declined, marking a crucial shift in sentiment from trading to HODLing.
Long-term Bitcoin holders have shown less willingness to sell in 2023, despite the recovery in prices. According to data from CoinMarketCap, BTC has nearly doubled from its November 2022 lows as of press time.
Despite this, diamond owners refused to give up their BTC holdings. Dormant supply has reached new highs, with multiple age groups pointing to increased HODLing activity.
Source: Glassnode
A key reason behind this trend could be that most of these investors bought the coins before the 2022 bear market, when BTC prices hit new highs. Compared to then, BTC has not recovered significantly. It is possible that this has prompted these experienced traders to wait for the market to bounce back.
Bullish in the long run?
With the major halving event less than a year away, investors are being drawn to BTC’s bullish possibilities and are looking for opportunities to lock in the king coin.
However, as the amount of BTC available for purchase continues to fall, these prospective buyers may have to pay significantly higher prices to entice long-term holders to sell their holdings.
Source: Glassnode
Read Bitcoins [BTC] Price prediction 2023-24
Bitcoin has been trading in the $30,000-$31,000 range for several weeks, dampening sentiment following last month’s rally. However, according to the latest reading of the Bitcoin Fear and Greed Index, it showed that the market sentiment was in a state of “greed”.
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