{"id":482709,"date":"2022-02-02T20:30:17","date_gmt":"2022-02-02T20:30:17","guid":{"rendered":"https:\/\/ktsl888.com\/?p=482709"},"modified":"2024-06-11T14:11:09","modified_gmt":"2024-06-11T14:11:09","slug":"volume-of-bitcoin-illiquid-supply-points-to-growing-bullish-sentiment","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/volume-of-bitcoin-illiquid-supply-points-to-growing-bullish-sentiment\/","title":{"rendered":"Volume Of Bitcoin Illiquid Supply Points To Growing Bullish Sentiment"},"content":{"rendered":"
The way bitcoin holders move the BTC in and out of their wallets can often be a strong indicator of where the market might be headed next. Not just the movements of the asset, but where they are being moved to. An example of this is when more investors are moving their holdings to exchanges, which means that sell sentiment has risen and investors are dumping their coins, and vice versa.<\/p>\n
In this same line, looking at the liquid and illiquid supply of bitcoin can also be another strong indicator. And this time around, the percentage of bitcoin supply that remains illiquid point towards a bull trend and hold sentiment among investors.<\/p>\n
Bitcoin illiquid levels have shot up in the past few years. In 2017, the total illiquid supply of BTC had risen above 76%. This number had remained under this level for the next four years, until now. Currently, the total BTC illiquid supply has risen back above 76% to its present 76.%. It points to more investors being more interested in holding their assets for the long term.<\/p>\n
Related Reading |\u00a0Bitcoin Supply On Exchanges Hits New Multi-Year Low Of 13.27%<\/a><\/strong><\/em><\/p>\n Total liquid and highly liquid supply are split between 23.8% of the supply. The illiquid supply is held in wallets that show little to no history of spending of any kind. These wallets have held on to their holdings for longer than a year for the most part, and their history point towards the owners being in full accumulation mode. The contents of these wallets have barely moved, and if so, have not been in the direction of exchanges.<\/p>\n <\/p>\n Price and illiquid supply are now going in opposite directions of each other. While the price is going down, pointing towards bearish sentiment, the volume of illiquid supply is going up. This report<\/a> shows that illiquid supply went up by 0.27% over the course of a week, showing bullish sentiment among investors.<\/p>\n Bitcoin exchange outflows have also surpassed inflows in recent times, contributing to the growing illiquid supply. The past week saw outflows hit as high as 59K BTC per month leaving exchanges. The illiquid supply has been placed at approximately 51K BTC for the same time period. So, it is only natural to assume that the exchange outflows are being moved to personal storage by investors.<\/p>\n Total change reserves have continued to decline in light of this. For the first time in over two years, the total supply on Bitcoin exchanges has reached 13.27%, one of the lowest ever recorded.<\/p>\n <\/p>\n As for the digital asset, its price movements have maintained a particular trend. With the low momentum in the market, the digital asset has been unable to move upwards out of its $37,000 price point. Meanwhile, it has not fallen below this point either, showing that bulls are still successfully holding up the asset despite being in a bearish trend.<\/p>\n Related Reading |\u00a0Bitcoin Inflows Suggest Institutional Investors Are Moving Back Into The Market<\/a><\/strong><\/em><\/p>\n Exchange outflows and illiquid supply currently point to an accumulation sentiment as fewer and fewer coins are being spent and sold with each downtrend.<\/p>\n <\/p>\n The way bitcoin holders move the BTC in and out of their wallets can often be a strong indicator of where the market might be headed next. Not just the movements of the asset, but where they are being moved to. An example of this is when more investors are moving their holdings to exchanges, which means that sell sentiment has risen and investors are dumping their coins, and vice versa. In this same line, looking at the liquid and illiquid supply of bitcoin can also be another strong indicator. And this time around, the percentage of bitcoin supply that remains illiquid point towards a bull trend and hold sentiment among investors. Bitcoin Illiquid Supply At 4-Year Highs Bitcoin illiquid levels have shot up in the past few years. In 2017, the total illiquid supply of BTC had risen above 76%. This number had remained under this level for the next four years, until now. Currently, the total BTC illiquid supply has risen back above 76% to its present 76.%. It points to more investors being more interested in holding their assets for the long term. Related Reading |\u00a0Bitcoin Supply On Exchanges Hits New Multi-Year Low Of 13.27% Total liquid and highly liquid supply are split between 23.8% of the supply. The illiquid supply is held in wallets that show little to no history of spending of any kind. These wallets have held on to their holdings for longer than a year for the most part, and their history point towards the owners being in full accumulation mode. The contents of these wallets have barely moved, and if so, have not been in the direction of exchanges. Illiquid supply touch four-year highs | Source: Glassnode Price and illiquid supply are now going in opposite directions of each other. While the price is going down, pointing towards bearish sentiment, the volume of illiquid supply is going up. This report shows that illiquid supply went up by 0.27% over the course of a week, showing bullish sentiment among investors. Exchange Outflows Grow Bitcoin exchange outflows have also surpassed inflows in recent times, contributing to the growing illiquid supply. The past week saw outflows hit as high as 59K BTC per month leaving exchanges. The illiquid supply has been placed at approximately 51K BTC for the same time period. So, it is only natural to assume that the exchange outflows are being moved to personal storage by investors. Total change reserves have continued to decline in light of this. For the first time in over two years, the total supply on Bitcoin exchanges has reached 13.27%, one of the lowest ever recorded. BTC supply on exchanges drops to 13.55% | Source: Glassnode As for the digital asset, its price movements have maintained a particular trend. With the low momentum in the market, the digital asset has been unable to move upwards out of its $37,000 price point. Meanwhile, it has not fallen below this point either, showing that bulls are still successfully holding up the asset despite being in a bearish trend. Related Reading |\u00a0Bitcoin Inflows Suggest Institutional Investors Are Moving Back Into The Market Exchange outflows and illiquid supply currently point to an accumulation sentiment as fewer and fewer coins are being spent and sold with each downtrend. BTC down to $37,000 | Source: BTCUSD on TradingView.com Featured image from The Crypto Associate, charts from Glassnode and TradingView.com<\/p>\n","protected":false},"author":541,"featured_media":482714,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[428,85003,85338,85337,12210,1119],"class_list":["post-482709","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bitcoin","tag-bitcoin-exchange-supply","tag-bitcoin-illiquid-supply","tag-bitcoin-liquid-supply","tag-bitcoin-supply","tag-btc"],"acf":[],"yoast_head":"\nIlliquid supply touch four-year highs | Source: Glassnode<\/a><\/pre>\n
Exchange Outflows Grow<\/h2>\n
BTC supply on exchanges drops to 13.55% | Source: Glassnode<\/a><\/pre>\n
BTC down to $37,000 | Source: BTCUSD on TradingView.com<\/a><\/pre>\n
Featured image from The Crypto Associate, charts from Glassnode and TradingView.com<\/pre>\n","protected":false},"excerpt":{"rendered":"