Addresses Holding 0.1% of BTC Supply Saw Strong Net Inflows in Q3 2023: Report. These significant net inflows occurred despite outflows on centralized exchanges.
According to a Q3 2023 on-chain report by crypto market intelligence company IntoTheBlock. Addresses holding at least 0.1% of the total quantity of bitcoin (BTC) had significant net inflows during the quarter.
According to IntoTheBlock. These addresses experienced an inflow of $600 million daily despite BTC falling to $25,000, indicating they are subtly bullish.
Strong Net Inflows in Q3
The same group of wallets had three further spikes of more than $400 million in net inflows after the one-day influx of $600 million in BTC, indicating a quiet build-up of considerable interest.
Notably, these significant net inflows occurred when withdrawals occurred on organized exchanges. According to IntoTheBlock, the wallets are not only addressed from centralized trading platforms but belong to organic customers.
According to IntoTheBlock, the investors’ patience might be tested if the United States Securities and Exchange Commission (SEC) takes too long to decide on the requests for Spot Bitcoin exchange-traded funds (ETFs).
While BTC saw substantial net inflows to addresses holding at least 0.1% of its supply, the asset recorded negligible net outflows of $90 million from centralized exchanges throughout the quarter. The figure is $1.3 billion less outflows than Q2 2023 by $140 million more than Q3 2022.
It is worth mentioning that Bitcoin fees for Q3 2023 slumped by over 71% compared to Q2 when BRC-20 tokens and the Ordinals protocol introduced a way to trade meme tokens on the network. Nevertheless, gas fees on the Bitcoin network have more than doubled since Q3 2022, showing that Ordinals brought sustained demand to the ecosystem.
Long-Term Bitcoin Holders on the Rise
On-chain measurements indicate that there are more long-term BTC holders now than there were in 2017. This cycle is comparable to the one that resulted in the significant price increase of the cryptocurrency in 2020.
According to CryptoPotato, the rise in long-term BTC holders will significantly impact 2024, the start of a bull cycle that rises into 2025. Analysts predict that the crypto world may be on the cusp of a supply shock that will significantly affect Bitcoin’s value, given that just two million bitcoins remain mined.