In its weekly on-chain report, Glassnode has stated that investor confidence is at a peak as price and on-chain metrics for Bitcoin continue to improve.
It added that there had been continued strength in on-chain supply dynamics, and activity remains well below bull market highs, suggesting there is more room to grow.
“Bitcoin investor conviction appears to be at all-time-highs, alongside numerous metrics ranging from price, to hash-rate, to proportion of mature coin supply.”
The report noted that long-term holders had released a very small proportion of their holdings, and exchange balances continue to diminish.
Bitcoin has now flipped Tesla and Facebook in terms of market capitalization. At the time of writing, the BTC market cap was $1.27 trillion, which puts it above Tesla’s $1.16 trillion but just below that of the global silver market, which is worth $1.37 trillion. Amazon is the next largest company by this metric with $1.76 trillion.
#Bitcoin is now more valuable than Tesla and Facebook. It is the 6th largest asset in the world by market cap.
Coming for you, Amazon! pic.twitter.com/1jWm72WKMl
— Bitcoin Archive (@BTC_Archive) November 8, 2021
Glassnode added that typical behavior as Bitcoin prices approach and make new highs is that long-term holders usually begin their distribution. Since BTC topped $66K, long-term holders have spent 0.73% of the coin supply back into liquid circulation.
The rate of long-term accumulation exceeded 400,000 coins per month for around 5-months through to late September. This has now returned to a neutral level, the paper added, and more coins are maturing to long-term holder status as investors are reluctant to sell them.
“Over 85% of the coin supply has remained dormant since August 2021. Investors are just not spending their coins.”
The report explained that the current spending patterns appear to be closer to taking strategic profits as opposed to a market-wide exit on the belief that the asset is overpriced.
Bitcoin prices have just hit a new all-time high during the Tuesday morning Asian trading session. According to CoinGecko, BTC tapped $66,700 just a few hours ago.
The asset has gained 4% on the day at the time of writing and is now just 3% away from the psychological $70K price level.
Total crypto market capitalization has also hit an all-time high today of $3.08 trillion, according to the analytics platform.
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