"Data on the Chain: Market Digesting Bitcoin Supply Pressure from GBTC, Majority of 'HODLers' Remain Resolute in Holding"

According to a report by The Block, analysts from blockchain analysis firm Glassnode stated that despite a slight increase in spending of older bitcoins after the approval of the US spot ETF, most long-term bitcoin investors are still unwilling to sell their coins at the current price.

In Glassnode’s latest on-chain weekly report released on Tuesday, it pointed out that the majority of bitcoin HODLers (long-term holders) “seem to be calmly navigating market volatility.” The analysts mentioned the Bitcoin Supply Last Active indicator, which measures the percentage of circulating supply of bitcoins held for multiple years, stating that “the majority of bitcoin holder cohorts remain steadfast, with the percentage of holdings for multiple coin age bands slightly below historical highs.”

The report also noted that there is selling pressure from the one-year and two-year holder cohorts, stating that “many (but not all) of them are related to GBTC (Grayscale’s bitcoin spot ETF), indicating that a considerable amount of older supply has been moving in recent weeks.”

ETF flows drive increased trading volume

According to Tuesday’s K33 Market Research report, bitcoin spot trading volume “has remained at elevated levels after the ETF approval.”

The report added that the increase in trading volume may be partly attributed to the liquidity of the bitcoin spot ETF. K33 analysts also stated that The Block’s data shows that bitcoin’s monthly on-chain trading volume in January reached the highest point in several months. With almost two days remaining in the month, the trading volume for January has reached $1.11 trillion. Bitcoin’s on-chain trading volume has been steadily increasing since September 2023.

(Source: Glassnode, The Block)

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

Successful Conclusion of CoinEx Taiwan’s 7th Anniversary Celebration, Embracing the Arrival of the Web3 Era Hand in Hand with Users

Since its establishment in 2017, CoinEx has been a professional cryptocurrency trading pla…