Here’s a look at Bitcoin’s supply side dynamics and why its important

ambcrypto.com:

Despite the recent cryptocurrency market volatility, the amount of Bitcoin in the crypto wallets of long-term holders consistently increased. At press time, BTC wasconsolidating around the $40k mark with a fresh dip of 1% in just 24 hours. While there was a rising uncertainty, HODLers had made their stance quite clear.

The total balance of Bitcoin held by investors who possessed it for over one year was over 11.7 million BTC (around $477 billion) at press time. This marked a new high, according to a chart shared by leading crypto analystLucas Outumuro, the Head of Research at crypto market analytics platform IntoTheBlock, on 17 March.

Source:Twitter

BTC hodlers have been accumulating, thereby, increasing their holdings by nearly 20% since December 2021. This was quite evident in the aforementioned graph.

Accumulation on an increased scale correlated with late-stage bear markets, followed by supply squeeze and initiation of cyclical bull runs.

Long-term holders continue moderate accumulation and/or short-term holder supply aged into long-term holder supply. For context, the accumulation happening today lower than the level of accumulation witnessed in June to September 2021. Regardless, it was a positive on-chain sign to see long-term holder supply neutral-to-rising in the current macro environment.

Source: DeepDiveBTC

Long-term holder supply increased by 52,648 coins over the last 30 days relative to the peak of approximately 630,000 coins in June 2021. That June 2021 period followed one of the largest long-term holder distribution periods (selling into higher prices) in the last five years.

In addition, theilliquid supply continued to increase, displaying a similar trend. Even in this drawdown period, percentage of illiquid