Glassnode: Bitcoin Supply Tight

Photo - Glassnode: Bitcoin Supply Tight
Glassnode, the blockchain data and intelligence platform, has some fresh BTC-related insights.
In their new report dubbed The Tightening of Supply, they analyzed the market situation.

‘The Bitcoin halving is estimated to be ~166-days away, and a spot ETF approval in the US is starting to look increasingly likely. As a result, BTC investor excitement and sentiment is on the ascent,” they write at the beginning.

The authors set out the goal to find out how much of the Bitcoin supply is freely circulating and outline the key findings. Among them is that Bitcoin supply is quite tight as exemplified by several measures. They include Illiquid, HODLed, and Long-Term Holder Supply, all of which are at historical highs.

For example, The Illiquid Supply metric, which measures the amount of supply held in wallets with minimal history of spending, is currently at an ATH of 15.4M BTC.

“Analysis of investor cost basis for various cohorts suggests that this $30k level is an important zone of interest for the bulls, with an 'air-gap' between there and $33k,” they add.

Another important finding is that a powerful divergence continues to form between Long-Term Holder supply, which has almost reached an all-time-high, and Short-Term Holder supply (effectively all-time-lows). At the same time, the long-term holders have reached new highs versus short-term holders.

This was last seen in July 2023.

One of the graphs that they use to illustrate what’s going on with the Bitcoin hodlers is dubbed “BTC: Supply Last Active 1yr+ Age Bands”, it shows that  “long-term Bitcoin investors remain tight gripped, with the relative proportion of circulating supply held for longer than 1yr+ hovering at all-time-highs for several age bands.”
BTC: Supply Last Active 1yr+ Age Bands. Source: Glassnode

BTC: Supply Last Active 1yr+ Age Bands. Source: Glassnode

They conclude the report by stating that the Bitcoin supply is historically tight “with many supply metrics describing 'coin inactivity' reaching multi-year, and even all-time highs.” 

The authors add that the BTC supply is extremely tightly held – a circumstance they describe as impressive taking into account the strong price performance YTD.

“With the halving expected in April, and positive momentum around a spot ETF in the US, the coming months are shaping up to be exciting ones for Bitcoin investors,” they write.

Previously, GN Crypto reported that crypto thrives in low-income countries.