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Bitcoin’s Hot Supply Drops 50% in 3 Months – Bullish or Bearish Signal?
The cryptocurrency market continues to experience a decline, but there may be signs that Bitcoin (BTC) could be on the verge of recovery. A recent report from Glassnode indicates that Bitcoin’s hot supply has dropped by an impressive 50% within three months.
For those who are not familiar with this term, “hot supply” refers to the amount of BTC available for trading and circulation in a short period. The market analytics firm revealed that Bitcoin’s hot supply has decreased significantly, plummeting from 5.9% of circulating supply to just 2.8%. This is a significant decline, especially when viewed over such a short span.
At first glance, this data may seem bearish as fewer coins are being actively traded or moved within the market. However, one must consider the possible implications and potential long-term effects on the market.
In a positive scenario, this could be interpreted as a bullish signal, suggesting that investors have decided to hold onto their assets instead of engaging in short-term trading. This might signify an increase in holding behavior, which is often associated with anticipated price rallies.
Source: https://cryptopotato.com/bitcoins-hot-supply-drops-50-in-3-months-bullish-or-bearish-signal/
