On-chain data, which has been dormant for some time bitcoin indicates that the supply is returning to the stock markets. Investors should watch out as this is considered a bearish scenario.
As seen in the data shared by CryptoQuant, BTCs that have not been active for 2-3 years and 3-5 years have returned to the exchanges.
“Currency entry” is an indicator that measures the total amount of Bitcoin transferred to the wallets of all centralized exchanges. When the metric shows a high value, it means that investors are returning to the stock markets. The continuation of this trend is considered a bearish scenario.
A modified version of this indicator is the “Output Age Bands Spent” (SOAB) foreign exchange inflow indicator. This indicator shows the individual contribution to the total inflows from different supply groups in the market.
As a result, these metrics are categorized by the amount of time the coins are inactive. Here, the relevant time groups are shown as “2y-3y” and “3y-5y”.
Koinfinans.com As we have reported, the chart below shows the trend in foreign exchange inflows from these supplies.
As the chart above shows, Bitcoin stock market entry has been bullish over the past few days. This means that some investors invest large sums over 2 to 3 years and 3 to 5 years.
This type of legacy supply is called the “long-term conservative” supply. In general, the older the coins, the less likely they are to move at any point.
Therefore, any movement from these coins to exchanges, in particular, bitcoin price can have noticeable effects.
Bitcoin Price Action
Bitcoin price is trading around $19,100, up 1% in the last seven days. There is not much activity as the price has been around $19,000 on average for a while. Although there was a downward trend before, the price has stabilized again.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.