© Reuters. Millionaire transactions are already the majority on the Bitcoin network, points out Glassnode
On-chain data analysis firm Glassnode pointed out that the growth of multimillion-dollar online transactions, which are already the majority, is a sign of growing institutional involvement.
The company said that since September 2020, the number of transactions worth more than $1 million has skyrocketed from nearly one-third to over two-thirds of the total value of the transferred BTC.
“Since September 2020, the domain of these large transactions has increased from 30% to 70% of the total amount transferred.”
Small transactions have dropped from more than two-thirds to about a third of the total amount transferred, according to the company.
The growing dominance of high-value transactions demonstrates that a “new era of institutional capital and high net worth [tem] for the Bitcoin network since 2020”.
Glassnode further claims that the total supply of bitcoins held by long-term holders (LTHs) recently hit a new record of 82.68% as the supply of short-term holders (STH) declined.
The company defines coins held by LTH (Long Time Holders) as those with a minimum age of 155 days, and defines a coin with an age of less than 155 days as held by STH (Short Time Holders).
According to Glassnode, “major supply restrictions” occur when the STH rate reaches 20%. The company predicts that the STH bid rate needed to raise prices could be reached by mid-September.
“Although the supply squeeze based on the STH Supply Index is not yet at 20%, there are several indicators and trends at play that suggest it could hit in mid-September.”
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