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Glassnode Co-founder Believes BTC is Bullish following illiquid BTC supply

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Rafael Schultze-Kraft, Glassnode co-founder and the on-chain analyst believes the illiquid supply of Bitcoin has exceeded the circulating supply for the first time in three years and it signals a bullish market for BTC.

Investors Accumulate More Bitcoin

The liquid supply of BTC has decreased significantly to 4 million BTC, valued at around $189.5 billion and the current illiquidity is more than 14.5 million BTC as reported by Glassnode.

Bitcoin liquid and illiquid supply. Source: Glassnode

The lack of liquidity suggests that more market investors are accumulating Bitcoin because they believe Bitcoin will continue to grow. Although the BTC market has been bearish investors believe it is a possible correction before the cryptocurrency hit a new high.

Furthermore, Jan & Yann, also Glassnode co-founders are in agreement with Rafael Schultze-Kraft on Bitcoin correction. Bitcoin miners also joining the long-term owners’ club as the exchange deposits keep decreasing.

The price is currently slightly above $46,900, which is a daily decrease of more than 9% according to CoinGecko. 

Tyler Winklewoss, Bitcoin billionaire, however, believes the $45,000 price zone is a “smell of opportunity,” which could mean this is a good time to start buying at dips.

BTC bulk purchase by mainstream investors 

Tesla, MicroStrategy and Square were able to take advantage of BTC’s price decline. These three companies have been booming since Elon Musk’s electric car maker took over Bitcoin on a massive scale. Although MicroStrategy is still in the process of devouring billions of dollars in BTC and rivalling $50,000 for the price, Square is using an additional $170 million in Bitcoin to increase its BTC reserves.

Schultze-Kraft emphasized that the rise in insufficient BTC liquidity was due to recent buying activity from mainstream investors and businesses.

Leading cryptocurrency exchanges also saw strong institutional purchases. On February 24th, Coinbase Pro recorded an outflow of more than 13,000 BTC. Ki-Young Ju, CEO of CryptoQuant, stated that big companies continue to buy BTC in anticipation of the next bitcoin bull market.

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