• Since these investors are not known to sell, any new supply they accumulate could also become illiquid in the future. Therefore, buying from these HODLs in particular could be a bullish sign, as it indicates that the supply of the asset in the market is potentially shrinking.

In the chart, demand from these HODLs is measured by the overall growth in their balance sheets. As you can see, accumulation addresses significantly increased purchases in 2020 and maintain this level of growth over the next few years.

Mr. Moreno also attached data on the "minor issuance" of #bitcoin to this graph. This metric tracks the total number of bitcoins mined online by miners.

Miners "mine" #BTC when blocks are resolved and are rewarded for each block. This reward is issued in BTC and is the only way to increase #cryptocurrency trading volume.

As you can see from the chart, the level of #issuance has remained almost constant for several years. During this chain of events, its value suddenly decreases. The reason for this, of course, is halving.

Halving is an event that occurs periodically on the Bitcoin network where the reward per block is permanently halved. This event occurs about once every four years, and the next one is scheduled for about 10 days later.

As you can see in the graph, demand from #mining addresses has been quite high since 2020, but has never exceeded miner issuance.

See also In Numbers: how will the cost of bitcoin mining change after the halving?

Recently, however, there has been explosive growth in the number of stored addresses, and this metric not only remains above network issuance, but far exceeds it.

This means that these HODLers are buying far more than miners have mined from the network. " The head of CryptoQuant notes that this is of course only a fraction of the overall demand on the network, as there are other buyers, and how strong the demand for BTC has been recently. He notes that this is a testament to how strong the demand for BTC has been recently.

At the time of writing, bitcoin was trading at around $68,400, up more than 4% over the past week.

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