The amount of Bitcoin held by long-term holders has reached an all time high of 80.5% of the entire circulating supply, according to data from crypto research firm Glassnode.
The all time high coincides with on-chain trends in the bitcoin market, where the number of coins on exchanges – ready to be sold – continues to drop precipitously.
In addition to the record number of coins kept by long-term investors, the BTC lightning network also saw a surge in growth last week.
“Bitcoin Lightning Network metrics continue hitting all-time-highs this week. Lightning Node count hits 15.6k. The total channel count is up to 73k. Channel capacity is up 22% in Sept to 2,904 BTC,” Yann and Jan, co-founders of Glassnodd tweeted.
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When prices were surging in 2020 and 2021, about 12.3% of the circulating Bitcoin supply was accumulated by long-term holders. The figures from Glassnode indicate that BTC owners are not willing to sell their hard earned bitcoin and crypto assets.
In the report, Glassnode said: “We can also see that the relative Bitcoin supply held by Short-term Holders has reached an all-time low of 20% of circulating supply. This is a rare occurrence that has historically described the late-stage accumulation periods of bear markets by the smarter money”.
Exchange supply ratio heads southbound
As noted, the supply of bitcoin held on leading exchanges has reached its lowest level in over two years. In fact, key exchanges saw significant outflows in the last week.
The Bitcoin supply on leading digital exchanges has reached its lowest level in more than two years. Several crypto exchanges saw significant BTC outflows in the last few days. “The exchange net position change metric demonstrates a clear change in character and market preference following March 2020. The market shifted from a regime of dominant inflows to outflows. July to September has been a historically significant period of net outflows, ranging between 80k and 100k BTC/month,” Glassnode stressed.
Historically, strong outflows from cryptocurrency exchanges to digital wallets has a positive impact on prices due to a drop in the liquid supply of Bitcoin amidst rising demand.
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