It seems that long-term holders of Bitcoin are becoming more active with spending their BTC, as the percentage increased in line with last week’s price surge. The retail and institutional demand for Bitcoin increased significantly last week, yet the on-chain activity remained different.
According to a recent report by Glassnode, the spending of old BTC has increased significantly. This is good news for Bitcoin investors because it shows that more people are willing to spend their Bitcoins which makes them less likely to sell off due to panic and fear.
Last week, digital exchanges saw an overall net inflow of Bitcoin. This was after substantial outflows in July 2021 that many had expected to continue throughout the year.
Last week, the amount of old Bitcoin spent on-chain increased. This can likely be attributed to investors de-risking and taking profits. So far this year there has been an overall net inflow of coins into exchanges which shows that the market has absorbed these realized profits despite a lack in price movement.
Glassnode also belongs to the same school of thought hence its statement, “The proportion of old Bitcoin spent on-chain increased last week, as some investors de-risk and take profits. So far, the market has absorbed these realized profits, despite an overall net inflow of coins to exchanges,”
Bitcoin has been on a rollercoaster ride since its introduction in 2008. After reaching what people would always think is its peak, it many times comes down crumbling. Though there have been several ups and downs, this week marked what many believe is an important milestone for Bitcoin as well as for cryptocurrencies at large: crossing the price level of USD 50K per coin!
Many people are hoping that this will mark not only bitcoin’s entry into the financial mainstream but also legitimize cryptocurrency itself further among global investors who until now had remained skeptical about investing their money in something so volatile or even risky.
The world’s largest cryptocurrency, Bitcoin is currently trading at $49,000 with over a market capitalization of a whopping $930 billion.
Was Bitcoin able to rise above the recent price surge? Good question. here’s the thing – the giant cryptocurrency had its entity-adjusted on a historical low; typically, 175k to 200k transactions each day.
Exchange Bitcoin Supply
The exchange supply ratio of Bitcoin dropped sharply. What happened? Or so you ask. Well, the leading BTC whales moved their digital assets from exchanges to crypto wallets in July 2021.
Still, recent reports from Glassnode are impressive. Perhaps, the crypto community can afford a smile. It shows there were impressive inflows last week. Although the overall market is bullish, some traders and investors appear to be taking profits while many others capitalize on the strength of the market.
On its statement, the company noted, “The Exchange Net Flow metric shows that this week saw overall net inflows to exchanges as some traders and investors appear to be taking profits and capitalizing on market strength. It is worth noting that the magnitude of inflow is not dissimilar to that seen through Dec 2020 to April 2021 bull market period and is reasonably expected behavior.”
Another Glassnode report issued last week points out that in the last 12 months, BTC miners’ revenue per hash has climbed by 57%, and it is now at levels seen in mid-2020. The amount of money earned from mining a single Bitcoin unit continues to climb as more people migrate away from traditional data centers towards crypto mines.
August 2021 saw a hike in Bitcoin mining revenues. This is because the overall hash rate shot upwards from 90 EH/s to 112.5 EH/s, which means that more miners are trying their hand at solving puzzles and earning rewards for doing so.