The on-chain researchers at Glassnode say that the amount of Bitcoin in circulation is melting away is unusual for a bull market, but it is a positive indicator for further price development.
For a brief moment, the Bitcoin price climbed again above the 60,000 mark in the Saturday evening hours, before falling back to $ 56,000 in the following 24 hours. The bulls continue to bite their teeth at the resistance; despite several attempts, it has not yet been enough for a substantial outbreak. With a slight daily increase of 0.4 percent, the Bitcoin price goes back into the attack at the start of the new trading week . At press time, BTC is trading at $ 57,881.
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The remaining top 10 coins came into the new week similarly sleepy and also turned cautiously into positive territory in the daily chart. The second largest currency Ethereum (ETH) increased by 0.4 percent on a daily basis , Binance Coin (BNB) by 1.4 percentage points. Uniswap (UNI) was able to expand its lead most clearly with an increase of 3.2 percent, while Litecoin (LTC) was the only coin with a 24-hour negative balance of 0.6 percent at the time of going to press.
Even if the crypto market may be a little hesitant at the beginning of the week: The total market capitalization has been at a record level for days. The total value of all crypto assets is currently around $ 1.83 trillion, just below the all-time high of $ 1.88 trillion a week ago. The distance to the symbolic 2 billion mark is getting shorter every day and, given the ongoing growth trend, should only be a matter of form.
Bitcoin supply melts during bull market
Bitcoin has also been holding up well above the one trillion mark for almost two weeks. Due to the Hodl mentality of investors, the analyst Willy Woo does not assume that the largest crypto currency will fall below the mark again that quickly. Since the Bitcoin market capitalization regained the symbol brand on March 9, only 7.3 percent of the amount in circulation has been moved. This indicates to the on-chain analyst that “one trillion US dollars is already heavily supported by investors”. According to Woo, “there is a fair chance we will never see Bitcoin under $ 1 trillion again.”
In other words, the liquid supply of Bitcoin in circulation has decreased significantly during the ongoing rally. Also Glassnode confirms these findings. According to the on-chain analysts, only 36 percent of the total BTC supply has been moved in the past six months. During the 2017 bull market, it was still 50 percent of the amount in circulation.
Asset managers close record quarter
This shows that the majority of investors do not speculate, but invest for the long term. The probability of price setbacks caused by profit-taking has decreased with the strong price performance. According to Glassnode, old Bitcoin are usually moved more frequently during bull cycles, which increases the supply of liquid, i.e. available Bitcoin. That this distribution is decreasing shows that the shortage of limited stocks is becoming more drastic. The competition for the remaining circulating supply was driven to extremes by the BTC greed of institutional investors. This trend coincides with the results of the current weekly report from Coinshares .
According to the trustee, asset managers’ crypto investments in the first three months of 2021 already amount to $ 4.2 billion. While the quarter is not over yet, spending is already above the previous record quarter of Q4 2020, when investments in crypto assets totaled $ 3.9 billion. As a result, the number of asset managers with assets under management of over $ 1 billion has now risen to five. The front runner, how else could it be, is Grayscale with over $ 43 billion in assets under management.