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.
[adinserter block="1"]“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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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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