Long Term Bitcoin Bulls 5 Month High Prices
Online analytics company glassnode reports that long-term Bitcoin owners are refusing to sell, even though the BTC market has soared to a 5-month high.
October 11th “Week on the chain“, Notes Glassnode that” long-term owners “- BTC wallets that have not seen a flow in over 155 days – are currently consuming nearly 13.3 million BTC, or 70% of the Bitcoin supply.
The report finds that long-term owners have increased their collective reserves by more than 2.37 million BTC (about $ 134 billion at current prices) over the past seven months. With only 186,000 BTC being mined by miners over the same period, Glassnode concludes that long-term whales amass 12.7 times as much BTC as a new offering.
Despite longtime owners refusing to sell, Glassnode saw a surge in on-chain activity as Bitcoin price soared to a local high of $ 57,860 on October 12.
In October, the number of active addresses in the chain rose 19% to 291,000 – a level not seen since the upward trend seen in December 2020. Glassnode thinks an increase in activity is possible.
“Historically, more active market participants correlate with increased interest in the asset during the early-stage bull market.”
The report also noted an increase in the average transaction size to around 1.3 BTC per remittance, suggesting an increase in capital inflows on an institutional scale. In August, the average transaction size dropped to 0.6 BTC per transfer.
Last week, the Bitcoin network posted its highest daily payout ever of $ 31 billion.
Related: The bitcoin outflow from centralized exchanges increases to 100,000 BTC monthly
On October 12, Glassnode reported that Bitcoin balances on centralized exchanges had dropped to a three-year low of 2.4 million BTC, further evidence that many investors are choosing a higher price.
Industry watchers have suggested that whales could be active ahead of the BTC market pending approval of a Bitcoin ETF this month.