Bitcoin (BTC) Hits New All-Time High, Here's What Happened
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According to a report by on-chain data aggregator Glassnode, this week Bitcoin has hit a new all-time high related to the illiquid supply of BTC held in cold wallets off crypto exchanges.
A tweet by the company's analytics team stated that there has been noted a divergence between Bitcoin balances on exchanges and the illiquid supply of BTC.
This week, the Bitcoin supply with no history of spending has reached an ATH of 15.2 million. As for balances on trading platforms, they have reached a bottom since early 2018. This figure stands at 2.3 million BTC at the time of writing.
A divergence can be observed between exchange balances, and the volume of coins held in illiquid wallets, being those with little to no history of spending.
— glassnode (@glassnode) June 21, 2023
Illiquid supply reached a new ATH of 15.2M BTC this week, whilst exchange balances have fallen to the lowest levels since… pic.twitter.com/qLW1Wto21t
Yuri MolchanHodlers accumulating Bitcoin fast and steadily
Glassnode also wrote that BTC hodlers are buying Bitcoin by approximately 42,200 coins per month: "the price insensitive class are absorbing a non-trivial portion of the currently available supply."
This process of active gradual buying started around two years ago, and Glassnode believes that investors may continue to buy BTC for another six months or even a year.
"Big players are jumping in"
Prominent crypto trader and analyst Michael van de Poppe has reminded his followers that "the big players are jumping in" to buy Bitcoin.
Recently, BlackRock fund management company submitted an application for a Bitcoin ETF, and Fidelity was rumored to do that soon too. Invesco and WisdomTree have both applied for a Bitcoin ETF as well. Deutsche Bank is striving to gain a license to provide crypto custodial services.
Besides, Fidelity, Citadel and Schwab have joined forces to launch cryptocurrency exchange EDX. All this has pushed Bitcoin up over $28,000, and it is trading close to the $29,000 level now.
Poppe added, "The big players are jumping in, so should you."
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