BTC/USD
-3.56%
USDT/USD
-0.04%
- Investor addresses holding Bitcoin (BTC) saw a surge in demand during December, with net purchases by these investors reaching 225,280 BTC through Dec. 23, according to a report by CryptoQuant. This represents an 82.6% monthly increase.
Low side selling liquidity
On the other hand, short liquidity, the amount of Bitcoin available for sale on exchanges and ETFs, fell by about 590,000 BTC over the same period. This drop is particularly due to a sharp decline that occurred between December 22 and 23, when the amount of Bitcoin available for sale fell by 520,000 BTC.
According to the report, the supply on over-the-counter (OTC) trading platforms that handle large trades has dropped from over 421,000 BTC to 403,000 BTC. These figures indicate that investment demand continues to absorb selling pressure.
Meanwhile, new investors appear to be soaking up the supply, with the number of short-term holders up 3% over the past week. These short-term investors have accumulated 641,789 BTC over the past year, bringing their total holdings to 3.81 million BTC, just 70,000 BTC below the all-time high on Dec. 15.
Short-term decline expected
Although Bitcoin has seen a 14.2% correction since hitting a high above $108,000 on December 17, it is on track to regain stability and resume its upward movement, according to analysts.
However, CryptoQuant analyst known as Onatt has advised caution, noting that the supply of Tether (USDT) on exchanges has decreased while the supply of Bitcoin has increased slightly.