Blockchain data analytics firm Glassnode has shown that an increasing number of multi-million dollar bitcoin transactions is a sign of growing institutional involvement. BTC worth over $1 million soared from nearly one-third to over two-thirds of the total amount of bitcoin moved.
"Since September 2020, the dominance of these large transactions has increased from 30% to 70% of the total amount transferred."
Dominance of transactions of at least 1 million dollars. Source: Glassnode. Small transactions, in turn, have dropped from more than two-thirds to about a third of the total amount transferred, according to the company.
“Transactions of less than $1 million in size have decreased from 70% to about 30%. -40% dominance.”
Dominance of small transactions. Source: Glassnode. The analyst firm says the growing dominance of high-value transactions demonstrates that a "new era of institutional capital and high net worth (has) flowed across the Bitcoin network since 2020."
Spot offer shock? Bitcoin price may fly in September
Glassnode further claims that the total bitcoin supply held by long-term holders (Long Term Holders or LTHs) has recently hit a record high of 82.68% as the supply of short-term holders (Short Term Holders or STH) has declined .Coins held by LTHs are defined as those with a minimum age of 155 days, that is, those that have been idle for at least 5 months and a few days. The rest of the bitcoins are considered STHs. The on-chain market analyst firm also says that “big supply constraints” occur when the STH bid rate reaches 20%. The STH provision rate is currently at 25%, according to the report.In green, the line represents a persistent increase in the amount of bitcoins held by long-term holders. The dashed pink line indicates when there were bitcoin supply shocks in the market. Source: Glassnode. Glassnode predicts that the STH bid rate needed to raise prices could be reached by mid-September.
"Although the supply squeeze based on the STH offer rate is not yet at 20%, there are several indicators and trends at play that suggest it could hit in mid-September."