Old BTC Supply Approaches New Highs

Bitcoin (BTC) saw a boom in demand during the past 48 hours as its price spiked above $48,000 for the first time since 1 January 2022. In tandem with the recent price recovery, BTC’s network activity also jumped in the last few days.

Old BTC supply percentage, an indicator that shows the trend of long-term holders and Bitcoin whales, has increased substantially since August 2021.

According to Glassnode, an on-chain analytics firm, the overall percentage of Bitcoin supply last active at least 12 months ago has reached 63%, near the all-time high level of 63.4%.

“As we approach the end of Q1-2022, we can see an extraordinary increase in the proportion of coins aged 1yr+, which has risen by 9.4% of circulating supply over the last 8-months. These coins largely reflect BTC volumes accumulated in the Q1-2021 phase of the bull market and the owners have thus held through two 50%+ drawdowns and three all-time highs. This recovery is quite similar in scale and duration to the 2018-19 recovery,” Glassnode highlighted in its recent weekly report.

BTC Network

The Bitcoin network activity has picked up pace recently amid a rise in price and institutional inflows. BTC exchange outflows are also rising. According to the data published by Whale Alert, a blockchain tracking platform, a leading BTC wallet moved 2,163 coins worth more than $100 million from digital exchange Coinbase to an unknown wallet on 28 March.

“The Bitcoin market has seen a stronger week, rallying off the lows of $40,710, and breaking out of the consolidation range to a new local high of $47,649. This is the first sustained rally after many months of sideways choppy price action. Bitcoin bear markets can be long, painful, and drawn out, however, they have the ultimate result of reshuffling supply ownership away from weaker, and towards stronger hands,” the report added.

Bitcoin (BTC) saw a boom in demand during the past 48 hours as its price spiked above $48,000 for the first time since 1 January 2022. In tandem with the recent price recovery, BTC’s network activity also jumped in the last few days.

Old BTC supply percentage, an indicator that shows the trend of long-term holders and Bitcoin whales, has increased substantially since August 2021.

According to Glassnode, an on-chain analytics firm, the overall percentage of Bitcoin supply last active at least 12 months ago has reached 63%, near the all-time high level of 63.4%.

“As we approach the end of Q1-2022, we can see an extraordinary increase in the proportion of coins aged 1yr+, which has risen by 9.4% of circulating supply over the last 8-months. These coins largely reflect BTC volumes accumulated in the Q1-2021 phase of the bull market and the owners have thus held through two 50%+ drawdowns and three all-time highs. This recovery is quite similar in scale and duration to the 2018-19 recovery,” Glassnode highlighted in its recent weekly report.

BTC Network

The Bitcoin network activity has picked up pace recently amid a rise in price and institutional inflows. BTC exchange outflows are also rising. According to the data published by Whale Alert, a blockchain tracking platform, a leading BTC wallet moved 2,163 coins worth more than $100 million from digital exchange Coinbase to an unknown wallet on 28 March.

“The Bitcoin market has seen a stronger week, rallying off the lows of $40,710, and breaking out of the consolidation range to a new local high of $47,649. This is the first sustained rally after many months of sideways choppy price action. Bitcoin bear markets can be long, painful, and drawn out, however, they have the ultimate result of reshuffling supply ownership away from weaker, and towards stronger hands,” the report added.

Source: https://www.financemagnates.com/cryptocurrency/news/old-btc-supply-approaches-new-highs/