Over the past few weeks, the selling pressures and high volatility usually experienced in the most valuable crypto market have greatly reduced.
The decline of BTC exchange balances signals reduced selling pressure. Currently, 2.6 million BTC is being held on exchanges. This is significantly lower than the last time Bitcoin hit a local top a year ago (2.8M), and lower than before the sell-off in March (2.9 million).
READ: Twitter Poll: Bitcoin price expected to reach $100,000 by 2021
The decline of #BTC exchange balances signals reduced selling pressure.
Currently 2.6M BTC are being held on exchanges.
Significantly lower than the last time $BTC hit a local top a year ago (2.8M), and lower than before the sell-off in March (2.9M).https://t.co/JyYA4oPmDX pic.twitter.com/ab4wkJSnmD
— glassnode (@glassnode) August 19, 2020
Still, the number of Bitcoin entities holding at least 1,000 BTC continues to grow.
READ: ChainLink now the 5th most valuable crypto, gains 418% since July 1
Bullish Signs
These metrics show sign of investor confidence, as Bitcoin’s long-term price prospects reached its highest level since August 2017.
Bitcoin bulls have been on a bullish run, triggered by high liquidity in the global money markets. Investors remain bullish in the long term despite the blurred global economic outlook and resurgence of the COVID-19 virus.
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The percentage of supply owned by entities holding ≤ 10 $BTC grew from 5.1% to 13.8% in 5 years, while the percent held by entities with 100-100k BTC declined from 62.9% to 49.8%.
These show that more retail investors are grabbing a stake on the most popular crypto asset, thereby diminishing the strength of BTC whales.
