As investors continue to weigh the ramifications of the U.S. debt ceiling deal and last Friday’s positive employment report, Bitcoin (BTC) has decreased by around 2% over the previous 24 hours and is once more below $27,000.
The price of one Bitcoin was $26,672 at the time of publication. Glassnode, an on-chain analytics company, reports that at the current market price of over $26,800, almost 780,000 Bitcoins, or the equivalent of 4.6% of the circulating amount, have been purchased.
A shift in either way would put a sizable number of coins in a position of profit or loss, underlining the extreme sensitivity of this price range, says Glassnode. This is because such big portions of Bitcoin are concentrated inside a narrow price range.
Thus, 780,000 BTC might be at danger of incurring a loss on their holdings if the price of Bitcoin falls below the aforementioned price range.
Bitcoin supply dominance sees dramatic shift
Glassnode notes that during the past two years, there has been a significant change in the dominance of the Bitcoin supply.
It mentions that investors engaged during Asian trading hours have increased their holdings by 9.9%, whereas U.S. businesses currently control 11% less bitcoin than they did in June 2022. It also states that this is still a clear reversal from the bull cycle between 2020 and 2021.
As previously mentioned, big changes are also occurring in stablecoins, with the USDT supply reaching new ATHs and the USDC and BUSD falling to multi-year lows. This may indicate that American capital is no longer as active in the market for digital assets, according to Glassnode.
When taking exchange on-chain flows into consideration, the on-chain analytics company saw noticeably decreased demand since April. This is due to the fact that in Q1, stablecoin inflows greatly countered those of bitcoin and ether.
However, when the market corrects downward, a pattern of more BTC and ETH inflows (assumed sell-side) relative to stablecoins is now apparent.
In their conclusion, Glassnode claims that there are multiple undercurrents at work, pointing to a net capital rotation and the transfer of liquidity into digital assets with reduced risk.
