$BTC Bitcoin's 'hot supply' approaches $40 billion as new investors flood the market at $95K
Key points:
The most recently moved supply segment of Bitcoin is increasing as higher prices see an influx of 'speculative capital.'
The 'hot supply' has doubled in just five weeks compared to the local lows in March.
Active address numbers have yet to mimic a classic return of a bull market.
Short-term holders (STHs) of Bitcoin (BTC) are back in the game as 'speculative capital' enters the market.
In a thread on X on April 29, the on-chain analytics firm Glassnode reported an increase in the so-called 'hot capital' of Bitcoin.
Bitcoin sees a 'surge in capital turnover'
New investors are entering the market as BTC price action circulates at its highest levels in several months.
Glassnode reveals that the total amount of coins that were last moved up to a week ago hit its highest number since early February.
'This metric captures the activity of short-term holders and is a proxy for speculative capital entering the market,' it explains.
In the last week, hot capital surged by over 90% to near $40 billion. Since the local lows at the end of March, hot capital has increased by $21.5 billion, a 'surge in capital turnover' that highlights a significant change in market sentiment.
'BTC hot capital bottomed out at $17.5 billion on March 23 - its lowest level since December,' summarizes Glassnode.
'In just 5 weeks, it added over $21.5 billion, suggesting a rapid shift from dormancy to speculation among new market participants.'
BTC bull market return in progress
As Cointelegraph continues to report, short-term investors (STH) have recently returned to aggregate profit while the price floats near $95,000.
Analyzing overall network participation, however, Glassnode suggested that a full bull market return has not yet occurred.
'Early signs of FOMO are emerging, with Hot Capital Participation rising and profitability metrics like Percentage of Supply in Profit (86%) and NUPL (0.53) expanding notably,' it wrote in the introduction of its latest analysis 'Market Pulse' released on April 28.
'However, while on-chain activity, such as transfer volume and fees, is recovering, daily active addresses remain suppressed, suggesting that overall organic network engagement is still rebuilding.'
Earlier this week, other sources reported on the potential dangers of 'FOMO' when it comes to a lasting recovery in BTC price.
