As the Bitcoin price continues to rise more short-term traders are becoming long-term holders of the cryptocurrency.
Over the past seven months, some 2.37mln Bitcoins are now deemed as long-term holds rather than short-term trades, according to crypto analytics firm Glassnode.
In the same period, there have only been 186,000 new Bitcoins issued resulting in a tight market and increasingly bullish traders.
With long-term holds representing roughly 15 times more Bitcoin than was issued, Glassnode described it as a period of accumulation.
This is among the factors that have driven the Bitcoin price back towards all-time highs, following the slump triggered by China’s clampdown on crypto mining earlier this year.
Changing hands at US$56,792 on Tuesday, Bitcoin was down about 2% for the day but the top-rated crypto retains most of the recent gains from around US$41,000 in late September.
