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Bitcoin’s One Month Supply Has Reached A Historical Low

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According to on-chain data, the percentage of Bitcoin supply aged one week to one month has now dropped to the historical low.

According to an analyst in a CryptoQuant post, short-term buying appears to be decreasing in the BTC market recently.

The “realized cap” method of calculating Bitcoin capitalization involves multiplying each coin by the price at which it was last moved, and then calculating a total for the entire supply.

This differs from the traditional market cap, which is calculated after all coins are simply weighted against the current value of BTC.

The “realized cap UTXO age bands” indicator is relevant here because it tells us about the individual percentage contribution to the realized cap from the various coin age groups in the market.

The quant explains in the post that when bears are just getting started, investors continue to buy without realizing they are in a bear market. When the bear market lasts a long time, most of these investors stop buying more.

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The supply that is one week to one month old represents the market’s short-term buying. Its drop to these lows suggests that the bear has reached the point where most investors have stopped accumulating more.

If the prior trend continues, the percentage of this supply falling into the bottom zone may indicate that Bitcoin is at or near a bear bottom for the cycle.