Bitcoin continues to gain despite the rising dollar
Bitcoin continues to gain despite the rising dollarBitcoin continues to gain despite the rising dollarBitcoinBitcoin

Although the US dollar is on the upswing, the bitcoin price continues to rise, reaching $51,353.76 at the time of writing. The price moved between $46,465 and $51,851 during the week, reaching a new high. This was reported by FX Empire on September 6.

Despite the U.S. dollar’s strong gains in London trading, it is still not clear when the Federal Reserve will begin tapering. In general, the sentiment on the trading chain remains positive. That’s why experts predict further gains in September. Reversals on the spot exchanges remain at multi-year lows.

Falling transaction numbers drive coin accumulation

Falling transaction numbers and a very limited outflow of bitcoins on crypto exchanges continue to drive accumulation among miners. Older coins that made a profit during similar bull market periods are also accumulating. Some of these coins fell from $10,000 to $3,800 when Bitcoin dropped to that amount during the global liquidity crisis in March 2020. There could have been panic selling if another market catastrophe had occurred at that time.

For a year to a year and a half, the coins aged and continued to accumulate. During that time, Bitcoin surpassed $30,000, consolidated above $40,000, and eventually rose to its current price of over $50,000 after falling to $30,000 in May 2021.

Bitcoin is spent less than 3 months after being mined

Glassnode’s data shows that in times of volatility Bitcoins are mostly issued less than three months after mining. But apparently hoarding is more common in the market than spending, as evidenced by a drop in HODL waves for young coins. With young coins making up only 15% of the total supply, this indicates a very pronounced downward trend.

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The share of older coins is increasing

In a few months, young coins become middle-aged coins (3 to 12 months old). After a year or more, they are referred to as old coins. The proportion of older coins increases, indicating a rising illiquid supply. Statistically, people are less likely to spend such coins.

The crypto market is undergoing a pronounced maturing trend

Investors willing to sell are on the supply side, while demand and supply from the sicThe crypto market should be seen as a market for those who do not want to sell. With nearly 50% of the coins in circulation between three months and three years old, the crypto market is going through a pronounced maturation trend. The total crypto market capitalization has increased by more than a trillion in less than two months.