The co-founder and chief technical officer of the crypto analytics firm Glassnode says on-chain data shows that Bitcoin (BTC) is headed straight for a supply crunch.
The firm’s latest data shows nearly 2,000,000 BTC has shifted from short-term to long-term holders since April of this year.
Glassnode’s Rafael Schultze-Kraft says the data clearly shows “supply will not be able to match demand.”
Glassnode defines a long-term holder as any Bitcoin user who has held onto their BTC for at least 155 days.
Crypto analyst William Clemente is also diving into new data on the state of Bitcoin’s supply.
He says BTC’s supply crunch ratio, which is another metric tracking the amount of Bitcoin held by strong hands versus weak hands, is showing a bullish divergence.
Clemente notes that the current level of on-chain activity is similar to what happened in June and July, right before the largest digital asset by market cap saw an August surge.
He says he’s also seeing similar negative sentiment in replies to his Tweets, which he views as another positive sign of what’s to come.
Bullish divergence between on-chain investor activity and price, just like in June/July.
‘On-chain is hopium’ replies [in my Twitter feed], just like in June/July.”
Bitcoin is currently exchanging hands at $44,746 at time of writing, a 3.5% percent gain on its 24-hour low of $43,207, according to CoinGecko.
Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inboxCheck Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
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 loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Warm_Tail
