Bitcoin Demand is Outpacing Supply as Long-Term Investors Pile Up
According to Glassnode’s co-founder and chief technology officer, on-chain data indicates that Bitcoin’s circulation will soon be constrained. Almost 2,000,000 BTC have moved from short-term to long-term investors since April 2021, according to the recent stats from the company.
“Supply will be unable to meet demand,” asserts Rafael Schultze-Kraft of Glassnode. Long-term holders are those who have held onto their Bitcoin for at least 155 days, according to Glassnode. New statistics on the supply of Bitcoin is also being examined by crypto researcher William Clemente.
A statistic that measures how much Bitcoin is held by strong and weak hands, the supply crunch ratio, is indicating a positive divergence. On-chain activity, according to Clemente, is now at a comparable level to what it was in the months of June and July, just before the biggest digital asset by market capitalization experienced a spike in August.
#Bitcoin supply has been steadily maturing to old hands.
From the peak at $65k, almost 2 million $BTC have transitioned from short-term to long-term holders.
Supply will not be able to match demand.
Be patient, #hodl.
— Rafael Schultze-Kraft (@n3ocortex) September 21, 2021
Other people have expressed the same point of view in response to his Tweets, which he believes to be a symbol of better things to come in the future. “Similar to June/July, there is a bullish differential between on-chain investor activity and value. Much like June/July, I’m getting a lot of “On-chain is hopium” comments [in my Twitter feed]. As per CoinGecko, Bitcoin is now trading at $42,706 per coin, a decline of 3.7% in the last 24-hours.”