On-chain market analysis firm Glassnode says an increasing number of million-dollar Bitcoin transactions is a sign of growing institutional involvement.
Glassnode indicates that since September of 2020, the number of Bitcoin (BTC) transactions worth over $1 million has shot up from nearly one-third to more than two-thirds of the total value of BTC transferred.
“Since September 2020, the dominance of these large size transactions has risen from 30%, to 70% of the total value transferred.”
Small-size transactions fell from more than two-thirds to roughly a third of total value transferred, according to Glassnode.
“Transactions of less than $1 million in size have declined from 70% to around 30%-40% dominance.”
The on-chain market analysis firm says the growing dominance of high-value transactions demonstrates that a “new era of institutional and high net worth capital [has been] flowing through the Bitcoin network since 2020.”
Glassnode further states that the total supply of Bitcoin held by long-term holders (LTHs) recently hit an all-time high of 82.68% as short-term holder (STH) supply declined. The analysis firm defines coins held by an LTH as those with a minimum age of 155 days, and defines a coin with an age under 155 days as held by an STH.
The on-chain market analysis firm also says that “major supply squeezes” occur when the STH supply ratio reaches 20%. The STH supply ratio is currently at 25%, according to Glassnode.
Glassnode predicts that the STH supply ratio needed to drive up prices could be achieved in mid-September.
“Whilst the supply squeeze based on the STH Supply Ratio is not yet at 20%, there are numerous indicators and trends in play that suggest it may hit it in mid-September.”
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