Regardless of Bitcoin not too long ago breaking by means of the $28,000 resistance stage, the crypto market has been comparatively flat for the previous month. The dearth of volatility within the traditionally aggressive market has been an underlying development evident in a number of on-chain metrics.
Bitcoin hodlers have been capitalizing on this sideways value motion, persevering with the regular accumulation that’s been the dominant development this yr. Information from Glassnode confirmed steady progress in hodler web positions, with a mean of 36,500 BTC being added to their balances each month.
This accumulation section isn’t a brand new improvement. As a substitute, it has been a sluggish and regular march starting in June 2021. Historic information reveals two related accumulation intervals — one spanning from April 2014 to December 2016 and one other from March 2018 to October 2020. With each intervals lasting roughly two years and 7 months, historic patterns recommend it could possibly be a minimum of six months earlier than the market sees one other hodler distribution cycle.
This enhance in hodler accumulation can also be seen in Bitcoin’s illiquid provide, or the quantity of Bitcoin that’s not readily in the stores, promote, or commerce. On June 20, Bitcoin’s illiquid provide reached its all-time excessive of 15.2 million BTC. This represents 78% of Bitcoin’s circulating provide on June 20.
There was a 2.2 million BTC enhance within the illiquid provide because the starting of 2020, displaying a 17% enhance. Whereas this yr has solely seen a 2% rise in illiquid provide, the seemingly small quantity equates to over 298,600 BTC added to illiquid wallets.
The quantity of Bitcoin held on exchanges remained comparatively flat because the starting of the yr, posting a 0.85% lower. Nonetheless, the drop turns into a lot steeper when zooming out — because the starting of 2020, the quantity of Bitcoin held on exchanges decreased by 25%.
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