Certain Bitcoin ownership metrics indicate that Bitcoin (BTC) could be teeing up for a bullish market cycle, according to the blockchain analytics platform Glassnode.
Glassnode notes that long-term Bitcoin holders (LTHs) have accumulated 79.5% of all BTC, which is equivalent to the rate achieved last October before the bull market kicked off. LTHs have on average held Bitcoin for more than 155 days.
As the firm explains,
“On an absolute coin volume basis, LTHs currently own the most coins in history, hitting 12.97M BTC this week.
Peaks in LTH-owned supply typically correlate with late-stage bear markets which are historically followed by a supply squeeze and initiation of cyclical bull runs.”
Source: glassnode
Bitcoin is trading at $48,018.96 at time of writing, and up over 4% during the past seven days after the volatile price action it experienced last week, according to CoinGecko.
Glassnode measures the “age” of a Bitcoin by noting when it was last transacted. The firm observes that this week, the amount of BTC spent that was older than one year reached “remarkably low levels” comparable to the 2020 pre-bull run period.
“On a 7-day moving median basis, less than 2.5k BTC aged 1yr+ is being spent per day.
This is 9x fewer old coins being spent when compared to the 2021 bull market peak in Jan 2021, where over 22.5k BTC were spent as prices reached $42k for the first time.”
Source: glassnode
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The post Looming Bitcoin Supply Squeeze Could Trigger New Bull Cycle, According to Crypto Analytics Firm Glassnode appeared first on The Daily Hodl.
