The amount of Bitcoin physically available to buy is continuing to fall as nobody really wants to sell at the moment, despite a new all-time high of $47,600.
Recent research by on-chain analytics provider Glassnode has revealed that Bitcoin’s liquid supply is continuing to decrease as investors progressively acquire and hodl the asset for the long term.
The findings indicate that there is currently around 78% of issued Bitcoin are either lost or being hodled. It added that this leaves less than 4 million BTC to be shared amongst future market entrants including large institutional investors such as PayPal, Square, S&P500 companies, ETFs, and the like.
Where is the Bitcoin Going?
The recent surge in BTC price may have been driven by retail traders as social sentiment on Twitter has hit record highs following the Tesla announcement that the firm bought $1.5 billion worth in January.
Grayscale also continues to add to its Bitcoin Trust and its most recent tweet suggests that assets under management for the institutional investment firm are at a record high of over $33 billion.
The Bitcoin Trust still contains the lion’s share of all Grayscale investments with 82% of the total AUM.
Crypto asset manager CoinShares confirmed that BTC investment product trading volumes remain high, averaging $670 million per day last week, representing 5.4% of total Bitcoin trading volumes.
Analyst Willy Woo stated that the big players have been adding to their stashes
“Whales have been adding to their balances throughout this dip, and new whales continue to be birthed. This shows that new coins have been bought by strong hands.”
On Feb. 5, CryptoPotato reported that the number of Bitcoin whales holding more than a thousand coins has increased by more than 200 since the start of 2021.
Bitcoin Price All-Time High
At the time of press, Bitcoin was trading at $47,600, a new all-time high eclipsing the one hit a few hours ago during early trading in Asia on Tuesday morning.
Read more: CryptoPotato