Bitcoin, the world’s largest cryptocurrency asset by market cap, is facing a serious liquidity crisis as BTC whales are not moving their digital assets. During the last 6 months, only 36% of Bitcoin’s supply has moved.
According to the latest data published by crypto analytics firm Glassnode, around 50% of the supply of BTC moved during previous tops but during the current bull run Bitcoin’s liquid supply is plunging to the lowest level in years.
Bitcoin whales are known for their large transfers. But in the last few months, BTC whales have reduced the selling of BTC significantly, and that has contributed a lot towards the recent surge in the price of Bitcoin. BTC investors are holding their cryptocurrency assets for larger gains in the future.
“In bull markets, old coins tend to move more. This increases the relative supply of younger coins in the network. In previous BTC tops, around 50% of the Bitcoin supply was younger than 6 months. We are currently significantly below this level (36%),” Glassnode mentioned in a tweet.
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The world’s largest cryptocurrency touched an all-time high of $61,500 on 14 March. As of writing, Bitcoin is trading near $58,000 with a market cap of more than $1.07 trillion.
$1 Trillion Bitcoin Support
Willy Woo, an on-chain market analyst, recently published the data of Glassnode and mentioned that the $1 trillion market cap is strong support for Bitcoin as nearly 7.3% of Bitcoins last moved at prices above the $1 trillion market cap level.
“This is a pretty solid price validation, $1 trillion is already strongly supported by investors. I’d say there’s a fair chance we’ll never see Bitcoin below $1 trillion again,” Woo said.
BTC is not the only cryptocurrency suffering from the supply crisis. According to the data published by Santiment, Ethereum’s token supply on leading digital exchanges has hit the lowest level in 28 months. The world’s second-largest cryptocurrency is now trading near $1,800 with a market cap of over $200 billion.