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Bitcoin price sustains above $41,500 despite rising BTC exchange supply

  • Bitcoin exchange supply has climbed steadily in the past three days. 
  • BTC price sustained above $41,500 on Saturday, as statistics reveal that over 30% of Bitcoin supply is considered lost. 
  • Bitcoin price is in an uptrend despite consistent profit-taking by traders since October 2023.

Bitcoin Spot ETF anticipation has supported BTC price above the $41,500 mark on Saturday. BTC price is $41,968, at the time of writing, on Binance. According to on-chain statistics, over 30% of Bitcoin supply has been held for more than five years. Most of this Bitcoin is considered lost.

Also read: Bitcoin Spot ETF wars: Bitwise S-1 filing reveals $200 million seed, beats BlackRock’s $10 million

Bitcoin exchange supply is on the rise

Bitcoin exchange supply has climbed from 5.37% to 5.45% of BTC’s total supply, between December 27 and 30, according to Santiment data. There is an increase in exchange inflow of BTC, according to Exchange Netflow statistics from Santiment. 

While BTC price has sustained above the $41,500 level on Saturday, Bitcoin price could suffer a correction with increasing supply of the asset on exchange platforms. 

BTC

BTC supply on exchanges (as % of total supply BTC). Source: Santiment

According to the Network Realized Profit/Loss metric, BTC holders have engaged in profit-taking since October 2023. There are large spikes in profit-taking in BTC throughout December, as seen in the chart below. 

BTC

BTC Network Realized Profit/Loss and price. Source: Santiment

According to data from IntoTheBlock, over 30% of Bitcoin supply has been held for over five years. The data intelligence firm notes that while there are dedicated BTC holders, a large percentage of the Bitcoin is considered lost.

BTC

Bitcoin held dormant for over five years. Source: IntoTheBlock

Despite the bearish signals from on-chain metrics, BTC price has sustained above $41,500 on Saturday. In the past month Bitcoin yielded nearly 11% gains for holders. The asset is currently in an uptrend, despite profit-taking spikes.

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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