Bitcoin's Quietness Before the Storm: Data Says "The Sleeping Giant Will Wake Up!" - COINTURK NEWS
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Bitcoin’s Quietness Before the Storm: Data Says “The Sleeping Giant Will Wake Up!”

4:05 pm (82 days ago)
September 14, 2023

The crypto market, which has become boringly quiet, indicates a potential new attack with significant changes happening behind Bitcoin‘s (BTC) invisible face. On-chain data suggests a strong rally may occur.

On-Chain Data Suggests Bitcoin’s Quietness Will Be Broken

On-chain data provided by Blockware Solutions and Glassnode shows that the percentage of circulating supply active on the chain for the crypto king Bitcoin hit a record low of 5.4% earlier this week. In other words, less BTC is changing hands, indicating weakness on the supply side. Currently, there are 19.48 million BTC in circulation.

Blockware Solutions stated, “Price is determined by the margin, meaning that it is influenced by those who trade Bitcoin back and forth in the short term. As the lack of supply liquidity continues to increase, any demand catalyst, as indicated by less supply changing hands, will cause the price to skyrocket.”

Current data reveals that the percentage of dormant circulating supply, which has been inactive for over a year, is approaching 70%. The investment strategy of “buy and hold” continues to be a popular strategy in the crypto market. With the influence of this strategy, the group of investors known as long-term investors controls over 75% of the circulating BTC supply. Glassnode defines wallet addresses that hold coins/tokens for at least 155 days without selling as long-term investors.

Market Awaits Potential Catalyst for Upside: Spot Bitcoin ETF

Alongside the potential spot Bitcoin exchange-traded fund (ETF), which is anticipated to be a catalyst for upside and is a few months away from approval, macro and regulatory concerns are increasing day by day.

David Lawant, research director at FalconX, stated in a note to subscribers on September 12, “The macro scenario has never been so uncertain. Prolonged higher concerns can put pressure on risky assets, including the crypto market.” Lawant also added, “There may be some potential selling pressure from wallets seized by the government, Chapter 11 bankruptcy portfolios, and unlocking of large token holdings in the next 6-12 months. Lastly, there is uncertainty about whether there will be more regulatory action in the US.”

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