Bitcoin Short-Term Supply Reaches All-Time Low
October 13 2021 - 3:00PM
NEWSBTC
Data shows Bitcoin short-term supply has reached an all-time low
value. This may mean that investors aren’t keen to sell at this
level despite the latest rally up where the coin broke $57k.
Bitcoin Short-Term Supply Records All-Time Lows According to the
latest Arcane Research weekly report, the BTC short-term supply is
currently floating around all-time low values. The “short-term
supply” here refers to the supply of coins that were moved on the
chain within the last three months. When this indicator’s value
moves up, it means there are a lot of short-term holders in the
market right now who are looking to make a quick profit. On the
other hand, a decrease in the metric’s value suggests not many
holders are interested in selling right now, and that they are
waiting for longer gains. Now, here is a chart that shows the trend
in the Bitcoin short-term supply over its entire history: Looks
like the indicator is currently touching all-time lows | Source:
The Arcane Research Weekly Update - Week 40 As the above graph
shows, the short-term supply has been on a downtrend in the past
few months, and has now reached lows never seen before. Looking at
the chart, it seems like the only other time the indicator showed
values close to this low was back in 2015. Related Reading
| As Bitcoin Breaks $57k, Quant Explains Why It Could See A
Pullback Here On 30th September, the BTC short-term supply was at
around 14.7%. This is its lowest value ever. In the past couple of
weeks since then, the metric has seen a slight increase to 14.9%.
The reason behind this small rise is Bitcoin’s current rally where
the coin broke $47k for the first time since May of this year. One
thing to note here is that this indicator is based on the on-chain
movement of the coins. So if some investors are keeping their BTC
on exchanges rather than personal wallets, the metric will not show
any rise when they sell their coins on the exchange. Related
Reading | Only In Crypto: A Croissant Lists Potential Bullish
Drivers For Bitcoin And Ethereum In Q4 2021 Because of this, the
short-term supply isn’t the most accurate indicator of whether
investors are realizing their profits or not. Nonetheless, it does
show that many holders with their own wallets are holding off on
selling right now as they think the price will go further up. BTC
Price At the time of writing, Bitcoin’s price floats around $54.9k,
up 0.7% in the last seven days. Over the past month, the crypto has
gained 24.6% in value. The below chart shows the trend in the price
of BTC over the last five days: Looks like Bitcoin is showing a dip
right now after a large move up | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com,
Arcane Research
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