Bitcoin is „at the beginning“ of a long bull run, as shown by clearer and clearer motivations.
This is the opinion of Dan Held, director of business development at the U.S. crypto currency exchange Kraken, who on August 24 listed the latest data supporting a bullish outlook for Bitcoin (BTC).
Several observers have stated that this is only the beginning of Bitcoin’s price increases. According to Held, the contributory factors are both specific to Bitcoin and related to the macroeconomic environment.
Almost 98% of UTXO is in profit
More than 97% of Unspent Transaction Output (UTXO), i.e. the parts of a transaction that involve coins returned to the person making it, are currently in profit.
As reported by Cointelegraph, this means that less than 3% of the transactions have taken place at a higher price than the recent maximum of $12,400. Generally, this situation occurs at the beginning of bullish periods.
In other words, almost 98% of all BTCs are now worth more than when they were received, so long-term investors are now richer than almost any point in Bitcoin’s history.
Currently, Bitcoin System has remained above $10,000 for the second longest period of its existence, at par with July 2019.
Periods in which Bitcoin’s price remained above $10,000
The inactivity of the offer suggests HODL
Meanwhile, as Jameson Lopp, co-founder of CasaHODL, pointed out, the annual active offer reached a record low, equivalent to that recorded in 2011, during the early stages of the asset.
„People don’t want to part with their bitcoins,“ he summarized.
Graph of current bidding rate and active bidding rate in Bitcoin
Held cited the fact that 61% of BTC’s total offering has stood still for more than a year, a factor Cointelegraph has previously identified as a bullish signal. Investors are choosing to hold without trading or selling.
The new lows touched by exchange balances also contribute to the theory.