Bitcoin (BTC) continues to trade in a downward pressure consolidating around $54,000 levels. However, the world’s largest cryptocurrency valuations stay above $1 trillion and will probably never go below that ever again.
The reason is that the on-chain data shows that long-term holders have been buying the recent dips in the market. Interestingly, as the BTC price has fluctuated between the $53K-$61K levels, Bitcoin Miners have resolved to HODLing instead of selling and booking profits.
#Bitcoin miners are now HODLING more than they’re selling. pic.twitter.com/hRR5ShAC97
— Documenting Bitcoin (@DocumentingBTC) March 23, 2021
“It is rational for publicly traded #Bitcoin miners to become net purchasers of BTC rather than sellers,” says MicroStrategy CEO Michael Saylor.
On the other hand, the Bitcoin supply at the exchanges continues to fall further. On Tuesday, March 23, nearly $1 billion worth of Bitcoins (BTC) has moved off the Coinbase exchange in what seemed like an institutional purchase. Analysts Willy Woo points out that the exchange outflows suggest that coins have been moving to long-term holders who have a minimal history of selling.
Anyone selling right now is cray cray. Seriously strong long term holders are buying this dip. pic.twitter.com/wVhfMOHaDl
— Willy Woo (@woonomic) March 23, 2021
The recent fall in the ‘Bitcoin (BTC) supply at the exchanges’ coincides with the downfall before the 2017 bull run. Thus, the shortage of supply has always resulted in major price rallies ahead.
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On-chain data provider Galssnode states that Bitcoin’ …
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