Despite the price of the leading cryptocurrency, Bitcoin [BTC], continues to grow by over 45% over the past 30 days, cryptocurrency investors aren’t moving their holdings, consistent with new data.
In line with a recent analysis report by Glassnode, it’s new “The Week On Chain” report on Monday, revealed that Bitcoin has continued rallying to new multi-month highs despite divergence in on-chain activity within the week ending on 23rd Aug.
The report discovered that Bitcoin on-chain activity just like the amount of entity-adjusted transactions has still not responded to the continued bull run action, remaining at historically low levels of between 175k to 200k daily transactions. Bitcoin on-chain activity dropped this low after May 2021’s cryptocurrency market crash and hasn’t risen above this level since.
The number of Bitcoin transactions was this low only a couple of times within the past 5 years, including the 2016 to 2017 bull run within which Bitcoin hit $20k for the primary time. An equivalent level was also recorded during the 2018 to 2019 market as the Bitcoin price plummeted 85% from the then all-time high.
Despite a big discrepancy between inflation and low on-chain activity, the general supply dynamics have remained quite bullish, Glassnode outlined. This week, the Bitcoin supply held by long-term holders has reached an all-time high of 12.69 Mln BTC, surpassing the earlier record posted in October last year.