Bitcoin’s Circulation Hits a 2-Month High, Suggesting Price Could Follow Suit
On-chain metrics provider Santiment believes that Bitcoin’s price could witness a surge given that its circulation reached levels last seen in July.
Bitcoin (BTC) was up by 2.18% in the last 24 hours to hit $43,146 during intraday trading, according to CoinMarketCap. BTC’s price has been quite volatile given that it experienced a considerable pullback earlier this month, which prompted a $10K loss days after breaching the psychological price of $50,000.
Nevertheless, Santiment believes that Bitcoin’s price could witness a surge given that its circulation reached levels last seen in July. The on-chain metrics provider explained:
“Bitcoin's circulation is a telling sign as to whether future market price growth can occur. The past 3 days, BTC is averaging 189.2k unique tokens circulating on the network, the highest since late July (when BTC grew 31% the following 5 weeks).”
Santiment acknowledged that Bitcoin’s price is usually tagged along whenever circulation rises.
Bitcoin has been ranging for the past few days, as noted by IntoTheBlock. The data analytic firm stated:
“Bitcoin has been moving sideways over the past few days, testing support. The IOMAP reveals that for BTC to reach $47k again, it has to go through several levels of resistance, with the crucial being located between $42.1k and $43.4k, evidenced by the level of trading activity.”
Long-term BTC holders’ accumulation continues
According to crypto analytic firm Glassnode:
“The total volume of Bitcoin held by Long-Term Holders has reached a new all-time high of 80.5% of circulating BTC. The breakdown of circulating supply is: 1) LTH supply profit = 71.1%. 2) LTH supply in loss = 9.4%. 3) STH supply = 19.5%.”
Long-term BTC holders and whales have played an instrumental role in accumulating more Bitcoin. For instance, crypto whales’ holding grew by 37,056 BTC in the last 30 days.
On the other hand, short-term BTC holders have been showing signs of spending their investments. Glassnode noted:
“Bitcoin short-term holders (STHs) are currently seeing their conviction tested. The STH-SOPR metric trades at or below 1.0 in: 1) Bullish shake-outs. 2) Bear markets. 3) Capitulation events. STHs are currently realizing minor losses on-chain, spending coins that last moved at higher prices.”
Meanwhile, a recent US Securities and Exchange Commission (SEC) filing showed that American multinational investment firm BlackRock made $369,137 profits from Bitcoin futures since July this year.
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