With more than $1 million in BTC transactions soaring, large holders accumulate Bitcoin to below $50,000

The institution did not leave Bitcoin (BitcoinData provided by Glassnode shows that even in the face of a bearish correction of more than 50% earlier this year, the market is the same.

The blockchain analytics platform reported on Monday that since September 2020, the dominance of bitcoin transactions worth more than $1 million has soared twice-from 30% to 70% of the total transfer value.

Since retail investors usually don’t participate in large transactions, Glassnode speculates that institutional investors may be behind the surge in the $1 million to $10 million trading community.

In addition, the platform pointed out that the Bitcoin network treats the above-mentioned block transactions as the BTC/USD exchange rate The transaction price dropped from 65,000 USD to below 30,000 USD The second quarter of 2021.

Breakdown of Bitcoin transfer volume for transactions over $1 million. Source: Glassnode

“As the market fell to a low of US$29,000 in late July, the trading group of US$1 million to US$10 million has soared significantly, and its dominance has increased by 20%,” wrote Glassnode in a report on Monday.

“This shows that these large transactions are more likely to become accumulators rather than sellers, and they are also quite constructive in terms of price.”

Small transactions lose their dominance

Glassnode provided additional transaction volume data, indicating a structural decline in the dominance of small-scale transactions.

Specifically, transactions of less than $1 million have been cut in half—from 70% in September 2020 to 30%-40% in March to May 2021. The decline indicates that small investors have given up their Bitcoin holdings to ensure early profits.

During this period The crypto market crashed in mid-MayAs the price of Bitcoin consolidated above the $30,000 support level, its dominance dropped to nearly 20%, but returned to the range of 30%-40%. During the recent rise to the level above 46,000 USD, it remained within the above-mentioned percentage range.

Breakdown of Bitcoin transfer volume for transactions less than $1 million. Source: Glassnode

“[The data] It clearly shows that since 2020, a new era of institutions and high-net-worth capital is flowing through the Bitcoin network,” Glassnode asserted.

Hoddle emotional return

More evidence of Bitcoin accumulation comes from the Glassnode indicator that tracks investor holding behavior.

The “Long-term and Short-term Holder Supply Ratio” indicator reports the supply of Bitcoin owned by long-term holders (LTH) Set a record high 82.68%. At the same time, the supply of short-term holders (STH) continued to decline, reaching 20%, indicating that holdings and token maturity are at work.

The supply ratio of long-term and short-term Bitcoin holders. Source: Glassnode

Glassnode recommends that when the STH supply ratio reaches 20%, it is followed by severe supply deflation-that is, supply shortages usually push up the price of the underlying asset.

related: No, new data shows that Bitcoin will not enter a bear market cycle similar to 2018 because BTC’s target is 45,000 US dollars

But who will accumulate the remaining 5% of the adjusted supply? The Glassnode indicator shows that coins between one week and three months represent most of the liquid supply.

For coins between 1 week and 3 months, Bitcoin HODL wave. Source: Glassnode

Glassnode quoted the above picture and wrote: “We can see that after the upward trend in the first quarter (old currency distribution), people in these age groups have fallen back to the bear market equilibrium level of 12.5% ​​to 15% of the supply.”

“This downward trend shows that token maturity is indeed at work, and many buyers in the 2021 bull market have insisted on becoming strong HODLers.”

At the time of writing, Bitcoin is trading at $45,930, which is 0.73% lower than the intraday high.

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