There have been all kinds of bullish predictions about the price of Bitcoin these days, especially after the king coin managed to explode in popularity following an amazing 2020.
Now, a new article from CoinDesk notes that Bitcoin’s on-chain metrics ate painting quite a bullish future for the king coin.
Bitcoin hit a peak price of $41,962 on Jan. 8 and has mostly traded the range of $29,000–$40,000 since then, according to CoinDesk 20 data.
Bitcoin demand continues to outstrip supply
On the other hand, the same online publication notes that the demand continues to outstrip supply amid the price lull.
“In 2021 so far, around 26,000 BTC have been mined. Meanwhile, the Grayscale Investment Trust has acquired over 40,000 BTC in the same period,” Glassnode said in its weekly report.
More than that, it’s also been revealed that the number of coins held on exchange addresses continues to slide, taking sell-side liquidity off the market.
CoinDesk also addressed the following: ‘the 24-hour average of bitcoin’s adjusted spent output ratio (aSOPR), recently fell to 1.00, this shows that coins moving between investors are no longer carrying profit.
It’s also important to note the fact that this is a metric that measures the profit ratio of coins based on the prices when they last moved. “The aSOPR ignores all outputs with a lifespan of less than one hour,” the online publication mentioned above notes.
“For SOPR to go lower, investors would have to be willing to sell at a loss, which is unlikely given the current shape of the market. We have been looking for this reset to generate some stability in the market and pave the way for the next bull run,” Glassnode recently said.
It’s been also revealed that historically, values below 1.0 have been consistently rejected during bull markets.
At the moment of writing this article, BTC is trading in the green and the coin is priced at $35,922.73.