Bitcoin holders’ current behavior is similar to December 2020, suggesting that they may be entering a similar growth phase
PANews April 16 news, according to The Block, this week’s Bitfinex Alpha report showed that the inactive supply of Bitcoin that has not moved for more than a year has decreased significantly, indicating that long-term holders will either continue to reduce their holdings, Either move their assets off the exchange. Bitfinex analysts said: “The basis of Bitcoin price dynamics is this week’s halving event. As the halving event approaches, we are seeing a surge in the number of Bitcoins leaving centralized exchanges, and Bitcoin has not moved in more than a year. Inactive supply has reduced to its lowest level in 18 months. The report added that the current actions of Bitcoin holders are similar to what happened before the Bitcoin market surged in December 2020, “a pattern that suggests we may be on the way. Entering a similar phase of growth.”
The decrease in the supply of long-term holders on the exchange observed by Bitfinex is consistent with CryptoQuant’s data. The chart shows that Bitcoin exchange reserves have reached their lowest levels since CryptoQuant began recording records in early 2021. In July 2021, Bitcoin exchange reserves hovered around 2.8 million coins, but have now fallen to approximately 1.94 million coins, indicating that Bitcoin has declined by approximately 862,000 coins since CryptoQuant began recording this metric.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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