Addresses holding 0.1% of BTC supply saw strong net inflows Cryptocurrency scrgruppen

A Q3 2023 on-chain report released by cryptocurrency market intelligence firm IntoTheBlock revealed that addresses holding at least 0.1% of the Bitcoin (BTC) supply saw strong net inflows throughout the third quarter of the year.

IntoTheBlock He said These addresses recorded a single-day inflow of $600 million despite Bitcoin falling to $25,000, showing that it is quietly bullish.

Strong net inflows in the third quarter

Following a single-day inflow of $600 million worth of Bitcoin, the same category of wallets saw three more increases of more than $400 million in net inflows, indicating a quiet build-up of strong interest.

It is worth noting that these large net inflows occurred while central exchanges experienced outflows. IntoTheBlock believes that wallets are owned by organic buyers and not just addresses from centralized exchanges.

However, coin holders’ patience may be tested if the US Securities and Exchange Commission (SEC) delays its decisions on applications for exchange-traded funds (ETFs), according to IntoTheBlock.

While Bitcoin saw significant net inflows to addresses holding at least 0.1% of its supply, the asset recorded a meager net outflow of $90 million from centralized exchanges throughout the quarter. This number is $1.3 billion less than the outflows from the second quarter of 2023 and $140 million more than the third quarter of 2022.

It is worth noting that Bitcoin fees for Q3 2023 fell by more than 71% compared to Q2 when BRC-20 tokens and the Ordinals Protocol introduced a way to trade tokens on the network. However, gas fees on the Bitcoin network have more than doubled since Q3 2022, showing that Ordinals has brought sustainable demand to the ecosystem.

Long-term Bitcoin holders are on the rise

Meanwhile, on-chain metrics show that the number of long-term Bitcoin holders is growing, and that this rise is comparable to the cycle we saw in 2017, which led to a significant rise in cryptocurrency asset prices in 2020.

CryptoPotato It stated that the growth in long-term BTC holders will have catastrophic consequences in 2024, which will be the beginning of a bull cycle that will rise until 2025. Considering that there are only about 2 million Bitcoins left to be mined, analysts believe that the cryptocurrency community may be on the verge of… A supply shock would significantly impact the value of Bitcoin.

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Cryptocurrency scrgruppen

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