Even though Bitcoin has been surging to record high prices, the “smart money” continues to accumulate BTC, according to crypto insights firm Glassnode.
In its weekly report, the crypto analytics firm notes that the amount of BTC that hasn’t moved in a year now reentering circulation remains relatively low. The firm refers to this type of Bitcoin as “revived supply.”
“What we can see is that around 6.5k BTC are being revived on a daily basis at present. What is also apparent is that this is a relatively low level compared to the 2017, 2019 and 2021 bull runs where over 20k BTC were revived per day.
In fact, the current levels of revived supply are similar to the spending patterns throughout late 2019 to 2020, which are mostly considered a late-stage bear market.”
Glassnode also notes that the amount of Bitcoin that hasn’t moved in the past three months has also reached an all-time high (ATH).
In terms of Bitcoin’s demand dynamics, the analytics firm says that exchange outflows continue to surge despite BTC’s positive price action.
“As a result of continued exchange outflows, the aggregate BTC exchange balance has fallen to multi-year lows of 12.9% of circulating supply.
Even as Bitcoin consolidates below ATHs, exchange reserves continue to deplete.”
These dynamics paint a “fairly constructive outlook for Bitcoin over the coming weeks,” according to Glassnode.
Read the analytic firm’s full report here.
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