Bitcoin’s stunning comeback to around $47,000 has left cryptocurrency analysts split on where the cryptocurrency will go from here, having risen nearly 60% from its July lows. At the time of writing Bitcoin is trading at $46,317.7.
According to a recent on-chain analysis by Glassnode experts, the company has a total of 12.48 million BTC, indicating a significant belief in the Bitcoin market. The long-term held supply is currently over 82 percent, indicating that a supply squeeze could be on the way, potentially igniting a new bull trend.
A supply squeeze normally restricts the total number of coins in circulation, and given the high accumulation trend, this appears to be a dormant trend for Bitcoin.
At the same time, the Bitcoin network is seeing a massive influx of institutional and high-net-worth funds. Small transactions (less than $1 million) have lost 30 percent of their transaction dominance while large transactions have taken over the network. Although this pattern has been present since 2020, it accelerated in July and is becoming more pronounced.
Furthermore, despite the fact that overall transaction volume is still low, the majority of transactions continue to come from huge wallets with a value of $1 million or more. The amount of transactions in this wallet category increased by 20% last week.
Even as Bitcoin hit $46k, the blockchain analytic firm observed that the digital asset is not beginning a bear cycle similar to that of 2018. This is due to the fact that the BTC market has yet to see a significant increase in the spending of old coins [> 1 year], in contrast to the bear market three years ago, when the old hands wiped out liquidity on most relief rallies.