Bitcoin (CRYPTO: BTC) is trading near record-highs at $57,726.97, yet investors are still holding on to the apex cryptocurrency undeterred by shrink supply, according to blockchain data and intelligence provider Glassnode.
What Happened: BTC is still trading 6.65% lower than the all-time high of $61,683.86 reached on Mar. 13.
Glassnode pointed out on Twitter that, in bull markets, “old coins” move more which in turn increases the relative supply of younger coins.
The tweet also contained a chart that tracked BTC supply that indicated at previous highs for the cryptocurrency supply touched 50% levels, but the supply levels currently stand at 36%.
In bull markets old coins tend to move more. This increases the relative supply of younger coins in the network.
— glassnode (@glassnode) March 21, 2021
Bitcoin’s market capitalization stood at $1.07 trillion at press-time.
Why It Matters: The chart is indicative of the fact that long-term investors — known as hodlers in Bitcoin parlance — are hesitant to sell their coins at current price points and are waiting for a further run-up.
On-chain analyst Willy Woo also posted Glassnode data separately which indicated that 28.7% of Bitcoin supply occurred at prices above $19,700, which he said was the all-time high of the last macro-cycle.
It’s only been 3 months since Bitcoin broke the $19.7k all-time-high of the last macro cycle.
But already 28.7% of bitcoins moved at prices above $19.7k. pic.twitter.com/izA9CMzWYc
— Willy Woo (@woonomic) March 21, 2021
The analyst said in another tweet that the $1 trillion market cap of BTC was “strongly supported by investors.”
“I’d say there’s a fair chance we’ll never see Bitcoin below $1T again.” However, Woo also had a word of caution.
See Also: Analyst Who Predicted $50,000 Bitcoin Sees Key Metric Indicating ‘March To $100,000’
“Be aware coin movements are not always from purchases. For example exchanges and users regularly move coins internally.”
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