Total Supply of Recently Moved BTC Hits 17-Month Low as Exchange Inflow Picks up

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As Bitcoin has started to trend lower again, all eyes are on the blockchain. The total supply last moved in the previous 6-12 months still looks healthy. This confirms the market dump originates elsewhere, albeit no one knows how or why. 

The “Younger” Total Supply Isn’t Moving Much

It is always intriguing to look at how Bitcoin users behave during times of extreme volatility. A near $3,000 price drop tends to take people by surprise. For novice traders, it is not uncommon to sell their recently acquired BTC again to look for lower price levels. That can only be determined by looking at the total supply for the past 6-12 months.

As the chart below depicts, that supply is not moving. The total supply last active between 6 and 12 months ago has hit a 17-month low. This indicates all “recently moved BTC” is not moving right now. Any amount of Bitcoin acquired between 6 and 12 months ago will still be in a big profit today. 

Source: Glassnode

On its own, this may not be much of an indicator. There are much “older’ coins in the total supply to be moved across the network at any given moment. Additionally, the chart above can include BTC stored in exchange wallets for the past year. That too would include it in the list of coins that haven’t been sent to a different wallet.

Even so, it is always worthwhile to look for reasons as to why Bitcoin’s price is on the decline. A setback after the bullish momentum from the past few weeks is to be expected. Dropping several thousand dollars was not exactly the plan most people had in mind, though.

Exchange Inflow is Rising

One other factor to consider is the overall liquidity across exchanges and trading platforms. That particular metric can be measured as well. The chart shows a clear increase where the BTC exchange inflow is concerned. A higher inflow can negate the decrease for total supply not moving in the past 6 to 12 months. 

Source: Glassnode

Considering how this chart depicts BTC inflows only, it is still difficult to draw any conclusion. Not everyone is looking to sell Bitcoin right now. Some traders will try to buy altcoins or DeFi tokens to potentially recoup losses. A dangerous game during market uncertainty like this, but to each their own. 

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