Bitcoin Exchange Deposits Hit 3-Year Low as UTXOs in Profit Soar

In a significant development within the cryptocurrency world, Bitcoin ($BTC) is experiencing notable shifts in key metrics, reflecting changing dynamics in the market. One striking development is the number of Bitcoin exchange deposits, reaching a three-year low of 1,761.673 (7-day moving average). This marks a significant decline in users depositing Bitcoin into exchanges for trading or other purposes. Interestingly, the previous three-year low, 1,762.827, was recorded just a few days ago, on September 19, 2023.

📉 #Bitcoin $BTC Number of Exchange Deposits (7d MA) just reached a 3-year low of 1,761.673

Previous 3-year low of 1,762.827 was observed on 19 September 2023

View metric:https://t.co/v3uKq4dCjX pic.twitter.com/AeRAFhjITb

— glassnode alerts (@glassnodealerts) September 20, 2023

UTXOs in Profit Surge to 1-Month High

Contrastingly, the number of Unspent Transaction Outputs (UTXOs) in profit has surged to a one-month high, now at 122,683,966.173 (7-day moving average). UTXOs represent individual units of Bitcoin transactions, and a growing number of them are in profit, indicating that investors who bought Bitcoin at lower prices are now seeing gains. This suggests increased confidence among long-term holders.

📈 #Bitcoin $BTC Number of UTXOs in Profit (7d MA) just reached a 1-month high of 122,683,966.173

Previous 1-month high of 122,636,131.911 was observed on 20 August 2023

View metric:https://t.co/JhaqOL08GQ pic.twitter.com/wvY6GsRqQ3

— glassnode alerts (@glassnodealerts) September 20, 2023

Supply Last Active 6m-12m Hits 6-Month High

Another notable metric is the amount of Bitcoin supply that has been last active between 6 months to 12 months, reaching a six-month high of 2,061,681.557 BTC (1-day moving average). This means that a substantial portion of Bitcoin that hasn’t moved in half a year to a year is now becoming active. This movement could indicate that long-dormant Bitcoin holders are considering transactions or position changes.

These shifts in key metrics underline the dynamic nature of the cryptocurrency market, which is influenced by various factors, including investor sentiment, market trends, and external events. While the drop in exchange deposits may signify a short-term reduction in trading activity, the rise in UTXOs in profit and the activation of previously dormant Bitcoin could indicate underlying bullish sentiment among long-term investors.

As the cryptocurrency market continues to evolve, keeping an eye on these metrics can provide valuable insights into the behavior of Bitcoin holders and the broader market sentiment. Bitcoin’s resilience and adaptability remain central to its enduring appeal in digital assets.

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