The percentage of BTC spending by long-term Bitcoin holders increased last week after the latest price surge. While Bitcoin’s retail and institutional demand jumped significantly last week, its on-chain activity remained divergent.
Glassnode, one of the leading on-chain analysis and crypto data providers, recently released its weekly Bitcoin network activity report and highlighted a jump in the spending of old BTC. Additionally, leading digital exchanges saw overall net Bitcoin inflows last week after substantial outflows in July 2021.
“The proportion of old Bitcoin spent on-chain increased last week, as some investors de-risk and take profits. So far, the market has absorbed these realized profits, despite an overall net inflow of coins to exchanges,” Glassnode mentioned.
Earlier this week, Bitcoin crossed the price level of $50,000 for the first time in 13 weeks. Currently, the world’s largest cryptocurrency is trading near $49,000 with a market cap of over $930 billion. Despite the recent price surge, Bitcoin’s entity-adjusted transaction counts remained at historically low levels of between 175k and 200k transactions per day.
Exchange Supply of Bitcoin
In July 2021, the exchange supply ratio of Bitcoin dropped sharply after leading BTC whales moved their digital assets from exchanges to crypto wallets. However, the latest data from Glassnode shows that exchanges saw decent inflows last week. “The Exchange Net Flow metric shows that this week saw overall net inflows to exchanges as some traders and investors appear to be taking profits and capitalizing on market strength. It is worth noting that the magnitude of inflow is not dissimilar to that seen through the Dec 2020 to April 2021 bull market period and is reasonably expected behavior,” the company added.
In August 2021, Bitcoin miners saw a jump in revenues as the overall hash rate increased from 90 EH/s to 112.5 EH/s. “BTC miner revenue per hash has climbed by 57%, returning to mid-2020 levels as the Great Migration continues,” Glassnode mentioned in a report last week.
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