Looming Bitcoin Supply Squeeze Could Start New Bull Cycle, Crypto Analysis Firm Glassnode Says

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Some Bitcoin ownership metrics indicate that Bitcoin (BTC) could be preparing for a bull market cycle, according to blockchain analysis platform Glassnode.

Glassnode notes that long-term Bitcoin (LTH) holders have accumulated 79.5% of all BTC, which is equivalent to the rate reached last October before the bull market kicked off. LTHs hold Bitcoin on average for more than 155 days.

As the company explains,

“Based on absolute coin volume, LTHs currently have the most coins in history, reaching 12.97 million BTC this week.

Spikes in the supply held by LTH typically correlate with late stage bear markets, which are historically followed by supply compression and the initiation of cyclical bullish movements. “

Source: glass knot

Bitcoin is trading at $ 48,018.96 at the time of writing, and up more than 4% in the past seven days after the volatile price action it experienced last week, according to CoinGecko.

Glassnode measures the “age” of a Bitcoin by noting when it was last processed. The company observes that this week the amount of BTC spent over a year has reached “remarkably low levels” comparable to the pre-bull run period of 2020.

“On a 7-day mobile basis, less than 2.5,000 BTC aged 1 year and over are spent per day.

That’s 9 times less old coins spent compared to the 2021 bull market peak in January 2021, where more than 22.5,000 BTC were spent as prices hit $ 42,000 for the first time.

Source: glass knot

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