The volume drought, as seen in Bitcoin's trading activity on exchanges, could be a precursor to volatility in prices.
on X, Bitcoin’s illiquid supply has been on a rapid climb over the last three months. So much so that it now constitutes a whopping 80% of the total BTC tokens in circulation.As is well known, illquid supply is inaccessible for trading, rather locked up by entities in a cold wallet in anticipation of a long-term BTC price appreciation. This approach is frequently followed by long-term investors who have confidence in an asset’s fundamentals.
According to a recent update by Glassnode, the addresses holding at least 1,000 tokens ripped to a 1-month peak.It should be recalled that a sizable chunk of whale investors contributed to the selling pressure during the market crash. In fact, these seasoned players had started to offload their bags in the days leading to the carnage.
Apart from whales, individual investors also found a liking for the king coin. Addresses storing at least 1 BTC reached a fresh all-time high as per aby Glassnode. The steady rise in retail investors’ demand for Bitcoin was a sign that the goals of widespread adoption, as envisaged by proponents, were on the right track.
In some ways, this tendency made Bitcoin resemble a long-term investment such as gold, mutual funds, and real estate.There’s an ancient proverb among technical analysts that goes, “The longer the base, the higher in space.” Simply put, it means the longer an asset consolidates sideways, the stronger the move when it finally begins.
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