Despite the prevailing market condition in the flagship crypto market, crypto investors are rapidly locking up their Bitcoin assets for the long haul, with 273,000 Bitcoin being taken out of circulation in the past month.
What you should know: Data retrieved from the crypto analytic firm, Glassnode, revealed that “liquid” Bitcoin addresses have shed 270,000 BTCs over the past 30 days, up from 175,000 Bitcoin at the start of January 2021.
READ: Crypto traders suffer heavy losses of $639 million within a day
At the time of writing, Bitcoin was trading at $34,771.82 with a 24-daily trading volume of $66 Billion. Bitcoin is down 3.63% for the day.
What this means: Increased buying pressure from large pocket investors might be the significant force driving the scarcity of Bitcoin, as about 33 institutional investors have stashed more than 1.2 million Bitcoin, or 6.5% of BTC’s circulating supply.
READ: Ethereum held on Crypto exchanges might run out of supply in 2 days
Recall Nairametrics, some days ago, disclosed how challenging it had become to buy bitcoins, as about 78% of BTCs in circulation (18.9 million BTCs) was held by large entities that had been holding bitcoin as long-term investments.
- Only 21 million BTCs are ever going to be produced in total, and presently, there are about 18.9 million BTCs in circulation. This shows a differential of about 2.1 million BTCs that are left to be produced, not forgetting that about 4.5 million Bitcoin have been lost forever.
- It also means that liquidity is drying up, as demand for the world’s most popular crypto hits record highs.
READ: Only 2.43 million Bitcoins left for mining
A study by Glassnode explained the reasons for the difficultly in buying Bitcoin:
“It is estimated that only 4.2M BTC or 22% of the total supply of BTC is in constant circulation and available for buying and selling. In other words, 78% of the circulating supply of BTC is considered illiquid.”
READ: Crypto investors lose $530 million within a day
https://twitter.com/BKCoinCapital/status/1344684199119351809?s=20
Data retrieved from Glassnode also revealed that “78% of the Bitcoin Supply is Not Liquid,” meaning the majority of Bitcoins available are not for sale and kept by many crypto investors for wealth preservation.
