Bitcoin (BTC) price has surged 2% today and is currently eyeing a move above $35,000 levels. At press time, BTC is trading at $34,961 levels with a market cap of $654 billion. While BTC has consolidated for a long time between $31K-$35K, it looks like we are on the verge of starting a new bull run.
Bitcoin supply at exchanges has hit its lowest levels in the last 2.5 years meaning we are facing a big-time liquidity shortage. Over the last week, nearly 18,500 Bitcoins worth $625 million have moved off exchanges. A majority of this comes from a single Bitcoin whale that is reportedly Guggenheim Partners. Interestingly, Bitcoin (BTC) alone accounts for a massive 92% of the total crypto inflows over the last week.
The #bitcoin supply stored in exchange wallets is at its lowest level since almost 2.5 years.
— glassnode (@glassnode) February 1, 2021
On the other hand, Bitcoin’s stablecoin supply ratio (SSR) has also touched a one-month low and continues to decline very fast this year in 2021. Thus, stablecoins continue to have a high buying power over Bitcoins hinting at an increased potential for upward BTC price movement.
Bitcoin Whales Addresses Surpass Mid-Tier Addresses
On-chain data provider Santiment notes that Bitcoin whales (over 1,000 BTC addresses) have surpassed mid-tier addresses (1-1000 BTC addresses) for the first time in history. While small players continue to resolve to profit-booking.
🐳 #Bitcoin whales (1,000+ $BTC addresses) briefly surpassed mid-tier addresses (10-1,000 $BTC) in terms of percent of supply held for the first time in history. As mid-tiers continue taking profit, expect whales to dictate price direction more & more. 👀https://t.co/F97wNRUAVG pic.twitter.com/feUHtISlYh
— Santiment (@santimentfeed) February 2, 2021
On the other hand, Bitcoin’s network activity has also reached an all-time high. As on-chain data provider Glassnode reports,
“In January, more than 22.3 million unique addresses were active in the network sending or receiving $BTC – the highest monthly number in Bitcoin’s history to date”.
Bitcoin Adoption Similar to Early Days of the Internet
As new users continue to join the Bitcoin blockchain, we are just entering into the early days of the Bitcoin adoption curve. Popular crypto analyst Willy Woo notes that Bitcoin (BTC) has the same users as the internet in the early days of the internet in 1997. However, Bitcoin’s adoption speed is nearly 4x higher. Woo predicts that Bitcoin will hit 1 billion users in just the next 4 years.
In terms of adoption, Bitcoin has roughly the same users as the Internet had in 1997.
But Bitcoin's growing faster. Next 4 years on current path will bring Bitcoin users to 1b people, that's the equivalent of 2005 for the Internet. pic.twitter.com/Np9yTR3WkL
— Willy Woo (@woonomic) February 1, 2021
The post Nearly 18,500 Bitcoins (BTC) Leave Exchanges In A Week As Whales Surpass Mid-Tier Addresses For First Time appeared first on Coingape.
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