Bitcoin (BTC) supply has entered its least active period this year as investors refuse to sell, according to new data.
On-chain tracking source Glassnode’s datareveals that Bitcoin supply is becoming increasingly scarce despite the price drop.
‘Stubborn’ investors are holding on to their Bitcoin
Bitcoin’s supply rate, which has been active in the last two years, fell to 44.5 percent, the lowest level in the last five months, on June 2.
This ratio measures the number of cryptocurrencies moved over the past two years and was last seen this low when BTC/USD hovered around $22,000.
The decline in the active supply ratio reveals that the idea of selling at current prices is not attractive at all for investors buying BTC until 2019.
Some other indicators, such as the Crypto Fear & Ambition Index, also point to the fact that the Bitcoin price is undervalued at $36,000.
You may be interested in: What is the Crypto Fear & Ambition Index?
Still, the correction in May caused an increase in the number of cryptocurrencies that became liquid. “Although the size of the savings in the last two years has been impressive, there was also a serious sales pressure in May,” Glassnode added, adding:
“It is clear that investors are panicking at the latest correction.”
Stock market reserves continue to rise
On the other hand, miners also seem reluctant to sell. The number of cryptocurrencies transferred from miner addresses has hit the lowest level in the last seven months.
Although BTC’s performance in May led to an increase in sales, this trend started to change and miner sales fell to the lowest level seen since November 2020.
Only individual investors stand by for a possible trend change. Exchanges’ BTC reserves continue to rise after they exploded in mid-April.