Smart traders will accumulate bitcoin regardless of its current price. With methods like DCA, the average entry point of one’s portfolio of bitcoins balances out over time. Recent statistics by Glssnode confirm there is significant accumulation taking place these days, indicating the BTC price may continue its recovery over the coming days.
Bitcoin Exchange Balances Drop Further
One of the crucial metrics in crypto to watch is how much of a coin’s circulating supply can be found on exchanges. It may be tricky to obtain that information for all currencies, but it is relatively easy to track for bitcoin and ethereum. Per Glassnode, the exchange supply for bitcoin continues to drift lower and is now at a three-year low. Enough reason to celebrate, although we must put it in the correct perspective.
While 2.388 million BTC on exchanges is a three-year low, it still represents over 11% of the circulating supply. Seeing many people engage in elf-custody for their BTC balance is commendable, but getting the remaining balances to go below 2 million and even 1 million will be very difficult. It is not impossible, but there is still sufficient exchange liquidity to influence the BTC price for better or worse.
That being said, an ongoing decline in exchange balances despite the recent market dip is intriguing. When markets sour, traders will often find themselves in “need of liquidity” to chase something else. That seems to apply less and less to bitcoin these days, although there is still much room for improvement. It doesn’t take billions of dollars in trading to crash or pump cryptocurrencies these days, as a minority holds all the market momentum for some weird reason.
Stacking Bitcoins, Not Sats
One peculiar trend to note is how BTC investors, speculators, and holders have moved past the “stacking sats” stage. At current prices, many are willing to take a gamble and buy a full BTC or even more. That is evident when looking a the number of addresses holding 1+ BTC, which is at an all-time high of 870.672. That doesn’t represent 870.672 individuals, mind you, but it is a good statistic.
However, there are also those slowly adding more BTC to their portfolio. Of the aforementioned 870,000 wallets holding over 1 BTC, 148.267 of them hold over ten bitcoin. That is a substantial amount of wealth being accumulated and a steep increase from the 145,500 addresses with that balance recorded in February 2022. The bear market is a golden opportunity for those who will “HODL” and worry less about short-term price changes.
Moreover, the number of 10+ BTC holders has hit a six-month high, which is rather interesting. Although this metric’s pattern initially followed the falling BTC price, the bullish crossover seems to play out. If one has the capital to burn, there is no reason not to try and own ten bitcoins or more. It will reach a new all-time high eventually, even if it might take a few years.
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