Summary:
-The number of bitcoins transferred to the exchange daily by miners hit a 3-year low;
-The active Bitcoin supply in the past 5-7 years hit a 5-year low;
-Financial expert Nic Carter explained the reasons for Bitcoin's rise.
Glassnode recently stated on Twitter that current Bitcoin miners and Bitcoin HODLers who have been holding Bitcoin since 2016 are now guarding their Bitcoin reserves and are unwilling to sell.
The number of bitcoins flowing to exchanges by miners hits 3-year low
Glassnode reported that the number of bitcoins sent by crypto miners to digital exchanges (1 MA) is still declining and has reached a three-year low of 0.707 BTC.
The last low of 1.073 BTC occurred on February 15, 2018, two years ago.
At the same time, as of January 17, the Bitcoin hash rate reached 1,5541.6 TH/s, the highest ever, which means that the Bitcoin network is as strong as ever.
Recently, the price of Bitcoin has risen to an all-time high of over 42,000 USD, pushing new miners into the Bitcoin network.
Active Bitcoin supply in the past 5-7 years hit a 5-year low
According to another tweet published by Glassnode, crypto investors who held bitcoin in 2016 were not in a hurry to sell bitcoin on exchanges or elsewhere.
The active 5--7-year (1-day MA) Bitcoin supply has fallen to a 5-year low, currently at 745,984.998 BTC.
The value of this indicator seems to have been steadily declining. The last five-year low observed two days ago was 746,042.543 BTC.
Financial expert Nic Carter explains why Bitcoin is rising
Nic Carter, a partner of Castle Island Ventures and a well-known financial expert, published an article sharing the reasons that may have driven Bitcoin to rebound after a sharp decline from the beginning of 2018 to the end of 2020.
Some of them have already been mentioned by other well-known crypto industry figures.
These reasons include: professional investors are not at risk of acquiring bitcoins, financial institutions are buying BTC-Grayscale is the largest hedge fund that provides institutions with this investment exposure; OCC allows banks to store crypto assets privately for customers Many people are worried about the depreciation of the U.S. dollar due to large-scale quantitative easing measures and the emergence of a new "Bitcoin evangelist"-MicroStrategy CEO Michael Saylor.
Last year, MicroStrategy invested up to $475 million in Bitcoin to protect its cash reserves.
Since then, the company has raised $650 million from investors to invest in Bitcoin and purchased more Bitcoin.
After the first Bitcoin acquisition was completed, the company's stock price rose from about $117 per share to $578 as of press time.