How Will the Moving Supply in Bitcoin Affect the Price?

Recently, there has been noticeable activity in the Bitcoin market. The long-standing stagnation in supply and the movement of approximately 62,000 Bitcoins to new addresses stands out as an important development for investors. This situation may create increasing pressure on BTC prices in the short term.

According to on-chain data, since mid-October, 62,000 Bitcoins coming from inactive wallets have increased market liquidity, while the renewed movement of these assets is drawing attention. However, without new demand, it may be challenging for prices to find direction. In past cycles, similar movements have indicated downward momentum. Analysts view the current situation as a cyclical correction in Bitcoin supply from long-term investors.

It is worth noting that in January 2024, there was a large outflow of 400,000 Bitcoins. Another noteworthy point in this process is that whale wallets continue to accumulate. Over the past 30 days, the amount of Bitcoin held by these wallets has increased, and there has not been a significant selling wave since October 15. In contrast, medium-sized wallets holding between 0.1 and 10 Bitcoins have been regularly selling.

Market data shows that the influence of momentum buyers has weakened and that those buying at the dip have not acted strongly enough to meet the supply. This lack of balance may continue to exert pressure on prices until new spot demand emerges. For investors, this implies that there is a need to restore the balance of supply and demand in the Bitcoin market. In the short term, it is clear that new waves of buyers are needed for prices to find direction.