The number of long-term held or lost Bitcoin reached a new major high of almost 34% of the supply
According to Glassnode, the number of Bitcoin lost or long-held has risen to a new five-month high – 7,131,084 BTC.
Number of lost Bitcoin hits 33.96% of total BTC supply
According to Chinese cryptocurrency journalist Colin Wu, this amount of crypto totals 33.96% of the BTC supply (21,000,000 BTC along with those that have not been mined yet). Now, over one-third of the Bitcoin supply can be considered out of circulation, as this increases Bitcoin’s scarcity – the biggest virtue of BTC often cited by Bitcoin maximalists against gold, fiat, and altcoins with a supply close to infinite.
However, some of these coins can be kept in cold wallets by long-term holders and crypto enthusiasts who bought or mined BTC early.
After a strong rally, the influence of BTC can also be observed on other indicators. For investors, the most important factor in profitability. Looking at the data, it looks like things could be changing for the market’s investors. Could this be a sign of Bitcoin’s price drop?
First, the market saw a large amount of HODL selling as the ASOL (Average Spent Output Lifespan) hit a 3-year high of 232 on Aug. 17. This was the first sign of the older coins have turned to sale since July 2018.
Bitcoin ASOL | Source: Glassnode
A possible reason why such selling ensued could be the rising Reserve Risk. The indicator is used to show how the market is doing from the investors’ point of view. When the indicator is high – the asset is unattractive, and confidence is low. When the indicator is low – the asset is attractive with higher confidence. According to Glassnode, the Reserve Risk is at a 3-month high. This would imply a huge signal of loss of confidence in Bitcoin. On the contrary, however, the cryptocurrency has hiked significantly over the last 2 days.
Bitcoin Reserve Risk | Source: Glassnode
To answer the question of whether BTC has the ability to increase sharply soon is very difficult. But can be sure that the investors and the network are both doing well right now. As AZCoin News reported, realized profits have been increasing for the past two months as the profit/loss ratio continued to hike gradually. Additionally, unrealized profits touched a 3-month high on 21 August too.
However, that is not all. An increasing number of active addresses has backed the Bitcoin network as more people enter the market. The latest market rally is a huge contributor to this. And in return, those investors were treated well, especially as prices soar, more addresses were profitable.
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