Record number of bitcoin changes hands: what happens?

According to on chain dates from the blockchain analysis agency Glassnode, it appears that a huge amount of bBitcoin (BTC) is being traded at the moment. There is a record amount of BTC, 3.8% of the total supply, recently traded around the $30,200 price point. Why is this, and what are the implications for the price?

Bitcoin investors show confidence

The bitcoin price has been stable for some time around $ 30,000. There are many sellers, but also enough buyers to avoid a price drop. The number of BTC traded around the $30,200 price point is a new all-time high, surpassing other periods. One such period was during the crash of cryptoexchange ftx. Then the BTC price plummeted, reaching a bottom of just $16,500.

High trading volume at a certain price point can indicate strong buyer interest. In the case of the mentioned $30,200, this may mean that many investors see this as a good price to buy BTC and that investors believe that the price is unlikely to go much lower. All in all a positive signal.

Surprisingly, HODLers, individuals who hold on to their investment for a long period of time, are mainly absent. Glassnode data shows that the amount of bitcoin held for the long term is at its highest level in 5 years. It concerns approximately 7.77 million BTC, which at the current price represents a value of approximately $233 million. This number also includes possible lost bitcoins.

Where does the selling pressure come from?

The sales volume may come from bitcoin mining businesses. They recently got one record quantity from $128 million worth of BTC to crypto exchanges sent. According to data from Glassnode, the amount of bitcoins sent to exchanges is 315% of the miners’ own revenue. The influx appears to be driven by the current price. This allows the miners to cover the losses from a year ago. At that time, companies were still struggling with the high energy costs and low BTC price.

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