Key message: The short-term supply of bitcoins, which are coins that have been spent, or changed hands, is shrinking. It is even falling to 2015 levels. That’s according to a report from Arcane Research. 

Supply as in 2015

Short-term supply depends on the analyst’s definition, but it is usually a period of 1 to 3 months. Such coins are often associated with traders looking to make short-term gains. Only 6.8% was spent during the last month. In terms of 3 months, it was approximately 15.8%. Thus, one-month supply is at historic lows and three-month supply is roughly at 2015 levels. However, the traders who moved their coins most frequently are short-term traders and they also drove the push above $50,000.

Thus, long-term holders continued to hold their coins and did not spend them. So it means they are waiting for the next price appreciation. Thus, activity from short-term traders may prove to be a bullish indicator.

The price of BTC has risen by 2.7% in the last 7 days. In monthly terms, this is an increase of 2.4%. So it has been a period of low volatility for Bitcoin and now finally Bitcoin has received a sharp price move and looks set to continue to rise after gaining ground at $47,000. However, it is unclear where the cryptocurrency will go from here.

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Source: bitcoinist.com