A record number of Bitcoin (BTC) transactions have been made over $1m for the first time.
Bitcoin is at an all-time high, with the digital currency now trading well above $50,000 USD. And with the recent surge, a new set of hodlers are starting to accumulate Bitcoin at a rapid pace. Today, Bitcoin’s market capitalization is around $60 billion USD, but some of the world’s biggest hodlers such as Jonathon Johnson and Kim Dotcom own roughly 1% of the total supply.
Bitcoin had a volatile 2018, which culminated in a crash on December 28th, 2018. The cryptocurrency now sits at $3,839.78, and is only up from its start of the year price of $2,238. The price has risen substantially since September, when the price was at $3,000.. Read more about why is bitcoin declining today and let us know what you think.
Institutions have not abandoned the Bitcoin (BTC) market, despite a 50%+ negative correction earlier this year, according to Glassnode statistics.
Since September 2020, the dominance of Bitcoin transactions over $1 million has increased twice, from 30% to 70% of total value moved, according to the blockchain analytics platform.
Because ordinary investors seldom participate in high-volume transactions, Glassnode believes institutional investors were to blame for the increase in the $1 million–$10 million transaction category.
Furthermore, the site said that the Bitcoin network handled the large transactions when the BTC/USD exchange rate dropped from $65,000 to around $30,000 in the second quarter of 2021.
Bitcoin transactions worth more than $1 million are broken out by volume. Glassnode is the source of this information.
“As the market traded down to $29k in late July, the $1M to $10M transaction group surged significantly, gaining dominance by 20%,” Glassnode said in a Monday report.
“This implies that these large-scale transactions are more likely to be accumulators than sellers, which is, once again, price-positive.”
Small transactions are losing their clout.
Additional volume statistics from Glassnode revealed a structural decrease in small-size transaction dominance.
In particular, the share of deals worth less than $1 million dropped by half, from 70% in September 2020 to 30%–40% in March–May 2021. Small investors may have sold their Bitcoin holdings to lock in early gains, based on the losses.
The dominance dropped to almost 20% during the mid-May crypto market collapse, but it returned to the 30–40% range as Bitcoin’s price stabilized above the $30,000 support level. During the current run-up to heights over $46,000, it stayed within the stated % range.
Transactions under $1 million in Bitcoin volume are broken out. Glassnode is the source of this information.
“[The data] clearly shows that since 2020, a new age of institutional and high net worth money has been pouring via the Bitcoin network,” Glassnode said.
The Hodl feeling has returned.
Glassnode measurements, which monitored investors’ hodling activity, provided further proof of Bitcoin accumulation.
Long-term holders’ supply ratios (LTH) hit an all-time high of 82.68 percent, according to the “Long and Short Term Holder Supply Ratios” indicator. Meanwhile, the supply of short-term holders (STH) continues to decrease, reaching 20%, indicating that holding and coin maturation are in play.
Long-term and short-term holder supply ratios for Bitcoin. Glassnode is the source of this information.
When the STH supply ratio hits 20%, Glassnode believes there will be a significant supply squeeze, i.e., a supply shortfall that will push the underlying asset’s price higher.
New data indicates that Bitcoin isn’t beginning a bear cycle like to that of 2018, as BTC aims for $45K.
Who will, however, collect the remaining 5% of the modified supply? According to a Glassnode statistic, coins aged one to three months make up a significant part of the liquid supply.
For coins that are between one week and three months old, there are HODL waves. Glassnode is the source of this information.
“We can observe that these age categories have dropped back to bear market equilibrium level of approximately 12.5 percent to 15 percent of supply following the rise in Q1 (old coin distribution),” said Glassnode, referencing the graphic above.
“This downtrend suggests that coin maturity is underway, and that many of the 2021 bull market purchasers have remained to become strong hand HODLers.”
At the time of writing, Bitcoin was trading at $45,930, down 0.73 percent from its intraday high.
The author’s thoughts and opinions are entirely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.
Bitcoin’s price has remained fairly steady since its all-time high of $20,000 in mid-December. Despite this, the cryptocurrency market has continued to grow at an exponential rate, causing some to question if Bitcoin’s price is sustainable. Seemingly confirming this, a recent report from Chainalysis revealed that Bitcoin transactions over $1 Million for the first time in history.. Read more about bitcoin sell-off today and let us know what you think.
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