Investors in Bitcoin (BTC) have been very positive about their investment for some time, as on-chain data showed a few months ago. Even the bear market in 2022 did little to change this, as the number of Bitcoins on the exchanges has been declining since 2021. But since then the price has risen sharply, which has woken up many old coins. They could slowly reverse this trend.
Number of available Bitcoins at all-time low
The fact that the number of coins on exchanges is declining does not necessarily mean that investors are optimistic, but a lot of relevant data suggests so. The most obvious fact is that the price has risen sharply – even compared to 2021, as the price has now reached a new record.
According to market analysts, the sharply reduced supply is actually the only reason for the enormous increase. According to data from CryptoQuant, supply has declined by more than 20% since the end of 2022. Trading volume has also returned to the levels of 2021 highs and judging by the price, this is likely largely due to buyers.
Early Investors Selling Bitcoin?
But that could gradually change. The Bitcoin developer writes on the social media platform Mononaut that someone sent 2,000 BTC to a Coinbase wallet. At the current price of around $71,500, the coins are worth around $143 million.
That in itself is a large amount, especially considering that this transaction is an exception. What is also special is that the owner has had the coins since 2010.
Ki Young Ju, founder and CEO of CryptoQuant, writes on X that this is a sign that the lack of sellers is “waking up” old coins. If this happens more frequently in the near future, the trend towards fewer and fewer coins in exchange wallets could reverse.
The liquidity crisis on the sell side has awakened #Bitcoin In my opinion
— Ki Young Ju (@ki_young_ju) March 26, 2024