Glassnode’s latest assessment of Bitcoin supply dynamics posits that the significant withdrawal of BTC from exchanges, now below 15% of circulation, does not automatically foreshadow an imminent supply shock. This decline is tempered by other market mechanisms influencing available supply.
The research firm highlights the critical role of long-term holder (LTH) accumulation. Metrics tracking LTH supply storage versus new coin issuance indicate sustained accumulation by entities holding coins over extended periods, easing pressure on immediate availability despite lower exchange balances.
The backdrop includes Bitcoin reaching a new all-time high price, triggering substantial liquidations exceeding $1.15 billion in short positions once breached. Concurrently, substantial December options market activity reflects pronounced bullish sentiment, evidenced by strikes between $140,000 and $150,000 signalling considerable price appreciation expectations.
Instiutional adoption momentum and ongoing regulatory shifts persist as major factors shaping Bitcoin market dynamics alongside these fundamental supply shifts and trading behaviors.