The aggressive distribution has contributed to bitcoin’s abysmal end to 2022.
Bitcoin sentiments have declined drastically, as key shark and whale addresses (holding 10 to 10,000 BTC) have collectively dumped $10.75B worth of BTC since last October. The distribution, which began two weeks before November 8 – the date of BTC’s all-time high – has led to a massive decline in the supply ratio held by these addresses.
In addition to this gradual decline, bitcoin’s circulation has significantly dried. These metrics have contributed to the asset’s poor end to the year, according to a report released today by crypto analytics platform Santiment.
📊 Since 2 weeks before the Nov, 2021 #Bitcoin #AllTimeHigh, shark & whale addresses holding 10 to 10,000 $BTC have dumped a collective $10.75B. This drop, combined with circulation drying up, has led to a sputtering end to 2022. Read our year-end report. https://t.co/dnnIwjyE9f pic.twitter.com/967MTOfKRO
— Santiment (@santimentfeed) December 31, 2022
A chart revealed that the bitcoin supply ratio held by whale and shark addresses (holding between 10 and 10,000 BTC) has significantly reduced since late October to a current value of 67.2%. The current supply ratio is the lowest recorded in over a year.
Furthermore, addresses holding at least 100 BTC have reduced to 16,169, while only 114 have at least 10K BTC at the time of reporting. This is according to data from Messari.
Circulation Drying up Yet LTHs Remain Unfazed
Amid the capitulation phase, bitcoin’s supply ratio on exchanges has gradually collapsed to 6.71%. The Crypto Basic previously highlighted the growing pattern last week. While this metric would ordinarily signal bullish trends, a progressive decrease in BTC trade volume indicates that the asset’s circulation is drying up due to reduced demand.
With its current value of $16,574 as of press time, BTC is down over 64% year-to-date and nearly 76% from its ATH. The asset has been trading flat in the past hour, with a 7-day decline of 1.61%. The comeback anticipated by investors and proponents within the space has yet to materialize.
Despite these worrying metrics, most long-term holders (LTHs) remain unfazed. CryptoQuant’s Binary CDD indicator signals low long-term holders’ movement. Additionally, data from IntoTheBlock suggests that 72% of bitcoin’s current holders have held the asset for at least one year.