- Addresses with balances of 1,000–10,000 BTC accounted for the maximum number of holders.
- Whale activity around BTC remained high and a few stats were upbeat.
Bitcoins [BTC] supply distribution looks fascinating as investors continue to redistribute their holdings. Long-term holders’ confidence in the king of cryptos has reached the highest level, as revealed by the latest data. However, investors had doubts about Centralized Exchanges (CEX) as BTC’s foreign exchange reserve plummeted. Is it a sign of increased accumulation or did investors turn to alternatives like Decentralized Exchanges (DEX) to store their holdings?
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Long-term holders are ambitious about Bitcoin
According to the latest tweet from Bitcoin magazine, the supply of Bitcoin’s long-term holders has just hit a new all-time high. The stats clearly showed the confidence investors had in BTC as they expect the price of the coin to rise again in the coming months and years.
JUST IN: Total #Bitcoin the supply of HODLers in the long term is ALWAYS HIGH 🚀 pic.twitter.com/AqfS3L5bjc
— Bitcoin Magazine (@BitcoinMagazine) July 21, 2023
A look at Bitinfochart’s data gave a better understanding of the current supply distribution of BTC between multiple groups of investors. Addresses with balances of 1,000–10,000 BTC accounted for the maximum number of holders, as the percentage of coins they owned was 24.18%.
This group was followed by addresses with 10-100 BTC and 100-1,000 BTC, accounting for more than 22% and 19%, respectively.
Source: Bitinfocharts
While long-term investors were reluctant to sell their holdings, it was interesting to see a significant drop in Bitcoin balances on the exchanges.
Jan Wüstenfeld, an author and analyst at CryptoQuant, recently pointed it out analysis That BTCThe supply on exchanges decreased. In fact, Bitcoin exchange balances had fallen to levels last seen around the start of 2018.
According to the analysis, exchange rates fell by about 32% from their peak in March 2020, from 3.1 million to 2.1 million BTC. The use of alternatives such as DEXs and funds not included in the statistics may be partly responsible for this.
In recent months, CEXs such as FTX and Binance have been criticized for bankruptcy or lawsuits, which may have eroded investor confidence in those platforms.
Source: CryptoQuant
Will investor confidence in Bitcoin be reflected on paper?
Aside from long-term keepers, whale activity around BTC also remained high in recent weeks, as evidenced by the number of whale transactions. BTC’s post-dip weighted sentiment also registered an uptick, suggesting that positive sentiment around the coin was increasing.
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From CryptoQuant, BTC’s exchange reserve declined, suggesting that the coin was not under selling pressure. In addition, the binary CDD was green. The statistic meant that long-term shareholder movements over the past 7 days were lower than average.
This was yet another bullish signal, suggesting a price increase in the coming days. At the time of writing, BTC was trade at $29,910.75 with a market cap of over $581 billion.