Bitcoin’s 90-day active supply has reached its pre-2017 bull run level, pointing to a possible bullish phase in the cryptoasset’s future.
According to a report published by digital asset manager Stack Funds, bitcoin ended Q2 2020 on a strong note, with holders continuing to consolidate and adopt a long-term investment strategy. The report claims bitcoin underwent a surge in its 90-day active supply over the last quarter, which serves as an indicator for the sentiment cycle of coin holders.
The report reads:
Prior to the 2017 and 2019 bull run, where Bitcoin hit $20,000 and $14,000 highs against the dollar, there was evidence of steep surges in the 90d % active supply […] These occurrences tend to peak for a window of 60 – 90 days, before Bitcoin’s induced price rally is realised.
Stack Funds continued, saying the spike in active supply has historically pointed to a run-up in bitcoin prices, which the authors believe “could happen sooner rather than later.”
The report also found a general tapering in bitcoin’s 90-day active supply over the past three years, suggesting that investor’s time horizon has lengthened, with investors holding BTC over longer periods. The authors claimed it has become apparent that investors are “accumulating the digital asset with expectations of a potential price increase.”
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