Even though the current Bitcoin price momentum might not depict it, intriguing things are happening behind the scenes. The dormant supply has hit a new all-time high, which is rather promising. Moreover, the exchange outflow volume is picking up again. All of these statistics indicate the negative pressure should end respectively soon.
Long-term Dormant Supply Rises
When it comes to Bitcoin and other cryptocurrencies, it is essential to keep tabs on the bigger picture. Checking the dormant supply, for example, will often help determine what the future may hold. Contrary to what many people may expect, however, the current price action does not affect the dormant supply. More specifically, it has no adverse effect on it.
Per Glassnode, the dormant supply last active over ten years ago has hit a new all-time high. A prominent sign under the current market circumstances. Most of the people who held BTC for this long will always be in profit, regardless of the current value. Bitcoin’s overall yearly performance remains better than other financial markets.
With over 2.039 million BTC still in the dormant supply, an interesting situation is created. Many people assume the big early adopters of BTC have not continued to accumulate past the first year or so. As this metric keeps increasing, however, that is not the case. Although the increase is minimal, it certainly comes at an interesting time.
Whether the dormant supply can keep rising is a different matter altogether. There were only so many BTC to go around in the early days, and the vast majority have remained in active circulation these past ten years. At the current rate, nearly 10% of Bitcoin’s maximum supply will remain dormant. That is a significant milestone for the world’s leading cryptocurrency.
Bitcoin Exchange Outflow Picks Up
Another essential Bitcoin metric to keep tabs on is the exchange outflow volume. Similar to the dormant supply, it can help gauge short-term Bitcoin price changes. As the exchange outflow volume is picking up again, there will be fewer BTC on exchanges to buy at the current price. Or that is how the market should work, at least.
Over the past few days, there has been plenty of Bitcoin market pressure to contend with. Prices have decreased by roughly 20%, which came as quite a surprise. As more and more people now money funds off exchanges, it will be interesting to see what the future will hold. A price recovery is more than welcome yet may not materialize for some time to come.
With both the dormant supply and exchange outflow heading in the right direction, the long-term momentum seemingly remains intact. Any intermittent bearish price pressure can disrupt the momentum briefly, yet it seems unlikely the long-term trend will break anytime soon.