On-chain data shows that bitcoin investors have recently been participating in accumulation at a rate five times greater than miner output.
bitcoin investors have been accumulating a significant net amount recently
In a new x.com/jvs_btc/status/1826248898337456571″ target=”_blank” rel=”noopener nofollow”>mailAnalyst James Van Straten discussed how demand among bitcoin investors currently compares to monthly issuance on the network.
“Monthly emission” here refers to the amount of bitcoins that miners have “issued” on the network over the past month. Miners produce new btc when they mine new blocks and receive block subsidies as compensation.
The chart below shows how monthly bitcoin issuance has compared to monthly balance changes across all btc investor cohorts over the past year.
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/08/Bitcoin-investors-buy-5-times-more-than-miners-produce-data.jpeg" alt="bitcoin issuance vs. demand” width=”1800″ height=”1013″/>
Looks like the balance changes of the investors have been quite positive in recent days | Source: x.com/jvs_btc/status/1826248898337456571/photo/1" target="_blank" rel="noopener nofollow">@jvs_btc on x
The investor groups included here include all kinds of holders, from the meager shrimps to the huge whales. The chart shows that the combined market equilibrium change had turned very negative last month, but gradually increased in value and has now moved into positive territory with a sharp spike.
Investors were reluctant to buy bitcoin at the levels it was trading at in July, preferring to sell, but the change in trend suggests that recent price levels have been much more attractive.
As the chart shows, this strong accumulation has far outstripped issuance. Monthly issuance stands at 14,000 btc, while investors have added a net 70,000 btc to their wallets over the past month, meaning they have purchased five times more than miners have minted.
As for how investors can accumulate more than what miners produce, the answer is simple: the cohorts here exclude exchange-related wallets.
Reserves on centralized exchanges represent the selling pressure present in the market, so when investors move coins to these platforms, the balance change of all cohorts shows a net negative value.
The recent strong accumulation of bitcoin investors is naturally a positive sign, as it suggests that pools are drawing a net amount of supply from the wallets of these central entities.
However, it remains to be seen how long the market remains in accumulation mode, as it has only been a few days since the metric turned positive.
btc Price
bitcoin had made another foray above the $61,000 mark earlier in the day, but it seems the asset has met rejection once again as it has retreated to the $60,600 level. The chart below shows the cryptocurrency’s recent trajectory.
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The price of the coin appears to have gone up over the past day | Source: BTCUSD on TradingView
Featured image by Dall-E, Glassnode.com, chart by TradingView.com
