Bitcoin Short-Term Supply Reaches All-Time Low

Keshav Verma

3 years ago

3 mins read

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Data shows Bitcoin short-term supply has reached an all-time low value. This may mean that investors aren’t keen to sell at this level despite the latest rally up where the coin broke $57k.

Bitcoin Short-Term Supply Records All-Time Lows

According to the latest Arcane Research weekly report, the BTC short-term supply is currently floating around all-time low values.

The “short-term supply” here refers to the supply of coins that were moved on the chain within the last three months.

When this indicator’s value moves up, it means there are a lot of short-term holders in the market right now who are looking to make a quick profit.

On the other hand, a decrease in the metric’s value suggests not many holders are interested in selling right now, and that they are waiting for longer gains.

Now, here is a chart that shows the trend in the Bitcoin short-term supply over its entire history:

Looks like the indicator is currently touching all-time lows | Source: The Arcane Research Weekly Update - Week 40

As the above graph shows, the short-term supply has been on a downtrend in the past few months, and has now reached lows never seen before.

Looking at the chart, it seems like the only other time the indicator showed values close to this low was back in 2015.

On 30th September, the BTC short-term supply was at around 14.7%. This is its lowest value ever. In the past couple of weeks since then, the metric has seen a slight increase to 14.9%.

The reason behind this small rise is Bitcoin’s current rally where the coin broke $47k for the first time since May of this year.

One thing to note here is that this indicator is based on the on-chain movement of the coins. So if some investors are keeping their BTC on exchanges rather than personal wallets, the metric will not show any rise when they sell their coins on the exchange.

Because of this, the short-term supply isn’t the most accurate indicator of whether investors are realizing their profits or not. Nonetheless, it does show that many holders with their own wallets are holding off on selling right now as they think the price will go further up.

BTC Price

At the time of writing, Bitcoin’s price floats around $54.9k, up 0.7% in the last seven days. Over the past month, the crypto has gained 24.6% in value.

The below chart shows the trend in the price of BTC over the last five days:

Looks like Bitcoin is showing a dip right now after a large move up | Source: BTCUSD on TradingView

Featured image from Unsplash.com, charts from TradingView.com, Arcane Research

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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