Lengthy investors proceed to hodl given $1T Bitcoin market cap

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Only 36% of circulating BTC has been transferred on-chain in the last six months, indicating that Bitcoin’s liquid supply is shrinking.

As per statistics compiled on March 21 by on-chain cryptocurrency data aggregator Glassnode, at the top of the 2017 bull market, 50% of Bitcoin’s availability was circulating in the preceding 6 months.

According to the statistics, few lengthy investors are considering selling Bitcoin at present market prices, implying that Bitcoin’s whales are hoarding for increased prices and that the existing bull-trend may have a long way to go.

Evaluating the age of BTC transferred on-chain to the age of BTC moved off-chain may provide some information into investor confidence. It’s common for older coins to be offered for sale when values reach new highs, but this tendency seems to be declining, indicating that investors would rather keep their holdings.

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The existing BTC availability is 18.66 million, which is 88.85% of the 21 million threshold. It’s also been noted that about a fifth of all BTC has been lost or stolen, implying that the real circulating supply of Bitcoin is much lower, enhancing the asset’s shortage.

On the same day, influential cryptocurrency commentator Willy Woo revealed Glassnode data showing major on-chain activity when Bitcoin’s market valuation was above $1 trillion, with 7.3 percent of BTC’s supply traded and the asset boasting a 13-figure valuation.

The data, which illustrates UTXO Realized Price Distribution (URPD), tracks Bitcoin’s unspent transaction outputs at different prices. Woo stated:

“This is pretty solid price validation; $1T is already strongly supported by investors. I’d say there’s a fair chance we’ll never see Bitcoin below $1T again.”

“URPD is a lens into price discovery by showing the price when coins last moved assuming they were bought by investors,” he added.

However, Woo noted that on-chain coin movements do not always indicate active trading, with exchanges regularly shifting their digital assets internally.

The statistic shows the UTXO Realized Price Distribution (URPD), which monitors Bitcoin’s unused transaction outputs at various prices. According to Woo,

“This is pretty solid price validation; $1T is already strongly supported by investors. I’d say there’s a fair chance we’ll never see Bitcoin below $1T again.”

“URPD is a lens into price discovery by showing the price when coins last moved assuming they were bought by investors,” he added.

On-chain coin changes, meanwhile, do not necessarily signify active trading, as platforms routinely move their virtual currencies domestically, according to Woo.

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