The active supply of Bitcoin (BTC) has fallen to a minimum of 19 months from just over one million bitcoins. This could signal a potential price increase if it is aligned with the findings of a report earlier this month from asset manager Stack Funds.
Consistent with the 2017 upward trend
Active supply experienced a sharp increase earlier this year with a 16% increase in less than three weeks to over 1.3 million Bitcoins. Looking at the 90-day moving average over the past three years, this pattern of a sharp increase followed by an almost equal decline was seen twice before, both just before a sharp increase in prices.
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The decrease in active supply shows that more users are retaining their Bitcoin rather than trading it.
Active addresses show the same pattern
Earlier this month, Cryptosoft active addresses increased sharply, reaching a one-year high before falling back in the last two weeks. Once again, this pattern was seen just before the 2017 upward trend and the sharp price increase in Q1 2019.
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Bitcoin active addresses
Miners are an important part of those who hold on to their bitcoins
A relatively new statistic published by Glassnode analyzes the volume of network flow from Bitcoin miners (the amount of Bitcoin flowing into the miners‘ directions minus the amount of Bitcoin flowing out of them) shows that miners represent a strong percentage of those who have Bitcoin with almost completely positive network flow since the beginning of the year.
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