Bitcoin’s (BTC) unmoved supply in over six months is rising, indicating a strong bullish sentiment among long-term holders toward the flagship crypto. While this is undoubtedly bullish for Bitcoin, it raises the question of where the selling pressure that has caused the crypto’s price to remain down for a while now is coming from.
75% Of Bitcoin’s Supply Unmoved In Over Six Months
Data from the on-chain analytics platform Glassnode shows that around 75% of Bitcoin’s supply hasn’t been moved in over six months. This refers to long-term holders who have held their holdings for the last six months or more. This impressive figure highlights the strong confidence that these investors have in Bitcoin.
The figure is more impressive considering that the flagship crypto had hit a new all-time high (ATH) during this period, but these holders held onto their tokens rather than looking to secure some profits. This indicates how much higher they believe the crypto token could rise in this bull run.
Such conviction from these long-term holders is needed if the flagship crypto reaches new highs in this market cycle. This category of investors has a massive influence on Bitcoin’s price and could easily send prices spiraling if they were to begin offloading their tokens. However, with these investors choosing to hold, Bitcoin’s price could continue to surge as those with such high conviction take more of its supply off the market.
The surge in Bitcoin’s unmoved supply comes at the perfect time, as Glassnode recently noted that Bitcoin investors are again shifting to accumulation and buying more during this market downtrend. This shift towards accumulation is significant, as Glassnode pointed out how Bitcoin has faced an “extensive period of supply distribution” since it hit a new ATH earlier in March.
Where The Bitcoin Selling Pressure Is Coming From
The on-chain analytics platform Cryptoquant recently provided insights into where the selling pressure that has kept Bitcoin’s price down is coming from. The platform recently mentioned that miners’ capitulation is still on, meaning miners are offloading significant amounts of their BTC holdings.
The most recent wave of sell-offs among these miners came on August 5, with daily outflows surging to 19,000 BTC, the highest level since March 18. Miners are said to have sold these coins as their average operating profit margins were squeezed to 25%, the lowest since January 22.
Cryptoquant suggested that these miners will likely keep selling as they remain underpaid amid the low prices and high mining difficulty. These miners saw their rewards cut in half during the Bitcoin halving in April, which has made their mining operations less profitable. Bitcoin’s price action has also not helped as these miners struggle to stay afloat.
These Bitcoin miners have also witnessed increased competition. With the increasing mining difficulty, more miners compete to solve a block.
Cover image from Dall-E, chart from Tradingview