The online report of cryptocurrency market intelligence company IntoTheBlock for the third quarter of 2023 shows that addresses holding at least 0.1% of Bitcoin (BTC) supply experienced strong net inflows in the third quarter of this year
The online report of cryptocurrency market intelligence company IntoTheBlock for the third quarter of 2023 shows that addresses holding at least 0.1% of Bitcoin (BTC) supply experienced strong net inflows in the third quarter of this year.
IntoTheBlock stated that although BTC fell to $25000, the daily inflow of these addresses still reached $600 million, indicating that they are quietly bullish.
Strong net capital inflows in the third quarter
After a single day BTC inflow of $600 million, the wallet experienced three more peaks, with a net inflow of over $400 million, indicating that strong interest is gradually growing.
It is worth noting that this significant net inflow of capital occurs when capital outflows occur on centralized exchanges. IntoTheBlock believes that wallets belong to individual buyers, not just addresses from centralized exchanges.
However, according to IntoTheBlock, if the US Securities and Exchange Commission (SEC) delays the registration of spot ETFs for Bitcoin, the patience of holders may be put to the test.
Although BTC's net inflow accounted for at least 0.1% of its supply, the asset recorded a negligible net inflow of $90 million from the exchange's focus throughout the quarter. This is $1.3 billion less than the second quarter of 2023 and $140 million more than the third quarter of 2022.
It is worth mentioning that when the BRC-20 token and Ordinals protocol introduced memecoin transactions on the network, the Bitcoin fees in the third quarter of 2023 decreased by more than 71% compared to the second quarter. However, since the third quarter of 2022, the gas cost of Bitcoin networks has more than doubled, indicating that Ordinals has brought sustainable demand to the ecosystem.
Long-term holders of Bitcoin are increasing
At the same time, on chain indicators show that the number of long-term holdings of BTCs is increasing, which is similar to the cycle in 2017, leading to a significant increase in the prices of crypto assets such as BTCs in 2020.
The Cafebitcoin report states that the increase in the number of long-term BTC holders will have a significant impact in 2024, marking the beginning of a bull market cycle that will continue until 2025. Considering that Bitcoin has only mined about 2 million pieces, analysts believe that the cryptocurrency community may be on the brink of supply shock, which will greatly affect the value of Bitcoin.
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