Bitcoin has never been better, yes, but here’s why perspective is key

Bitcoin at its best…
… for long-term investors.

This week, the total supply existing on exchanges fell to 2.45 million BTC, levels last witnessed back in August 2018. This is a result of the consistent accumulation the market has been seeing since March 2020.

This macro-accumulation held its course over the 2020 and 2021 rallies and reached where it is today.

Bitcoin supply on exchanges | Sources: Glassnode – AMBCrypto

This consistent behavior of buying Bitcoin has led to outflows dominating exchanges. Periods of inflows were observed around July 2020’s local top and again during the May crash, but went back to indicate buying.

As a result, on average, 80k to 100k BTC have been bought out between July and September. 

Bitcoin exchange net position | Source: Glassnode

This kind of pattern can be expected only from a particular set of investors who remain mostly undeterred by the micro-fluctuations. Long-term holders have been continuously increasing their holdings.

And presently, their holdings have hit an all-time high of 80.5% of all circulating supply. Now, some sell-offs were seen around April as a result of profit-taking. This fueled a fall to the low peak of 67.7% this year.

However, it also underlined the bullishness of LTH as back in 2018, the same fell to 58% and around 54 – 56% back in 2014. 
 

Source : ambcrypto.com