TL;DR Breakdown:
- The number of Bitcoin HODLed or Lost has reached a new 5-month high.
- The increase in BTC HODLed is also causing a decrease in the supply held by cryptocurrency exchanges.
On-chain cryptocurrency analytics platform Glassnode has confirmed an increase in the number of HODLers in the Bitcoin market. A significant number of Bitcoin hasn’t been moved over the past years, which is plausibly due to more strong-hand investors or lost coins.
Number of Bitcoin HODLed or Lost spikes
As Glassnode shared on Friday, the total amount of Bitcoin HODLed or Lost has reached a record high of 7,128,209.404 BTC, which is the highest level last seen since March. The numbers began dipping towards April, which somewhat explained why Bitcoin faced a major correction after reaching an all-time high above $64,000 on April 16.
The increase in Bitcoin HODLed or Lost shows investors are interested in holding Bitcoin again, suggesting where the price will go next. Zooming out from this data, a separate report from Glassnode also confirmed a spike in the number of Bitcoin that hasn’t been moved for at least a decade.
The chart below shows the number of Bitcoin HODLed or Lost for at least ten years, which has maintained an upward trajectory since the last two or three years.
It’s difficult to depict what percentage of Bitcoin is lost or HODLed by investors. However, the data is considered bullish as it means there will be less Bitcoin supply on exchanges.
Bitcoin supply on exchange is dropping
Given the growing rate of accumulation in the Bitcoin market, more coins are being moved off exchanges, which is causing a massive drop in the total number of Bitcoin held by centralized crypto exchanges. At the moment, there’s slightly less than 2.5 million BTC on exchanges.
Judging from the chart, it’s obvious there’s an inverse correlation between the price of Bitcoin and the number of BTC held on exchanges.
Source: https://api.follow.it/track-rss-story-click/v3/tHfgumto13Dwa5eLkuJpfSRFMxTa8z4W
