This week’s data showed that experienced Bitcoin (BTC) custodians are sparking another price hike by collecting BTC.
The supply of bitcoin must undergo a new obsolescence process, according to Glassnode, which monitors the chain.
Empty reserves a year ago
Highlighting the calculation of active supply, Glassnode researchers note that the percentage of Bitcoin supply that has recently changed hands a year or more ago forms a local low.
Under these conditions, holders or “traders” who had just sold old coins began accumulating earlier, increasing the overall life of the inactive supply. This, in turn, created “supply pressure” as demand increased compared to the available Bitcoin and the price increased as a result. Sales continued to the domestic peak in price, after which the operation was resumed.
This circular pattern was seen in late 2017, when Bitcoin reached $20,000, and the April 2021 high appears to be no exception.
However, the numbers for the two years are different.
The supply of bitcoin, which has been inactive for at least one year, has begun to decline to 54.2%. Compared to the peak in 2017, this indicates that a relatively large share of BTC is still in cold storage, Glassnode commented.
“However, it also indicates that fewer coins will be used to reach the rally in 2021.”
More and more scammers last resort
Cointelegraph often reports on the behavior of Hodlers and BTC of different ages influencing the market.
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Recently, data showed that the public strong hands are now in control of more Bitcoin offerings than at any time since October 2020.
The slice of the pie, which is owned by speculative traders, also continues to see local declines during incidents such as May and September of this year.