Bitfinex Alpha: Bitcoin supply drops to 18-month low after more than a year of inactivity, may signal a growth phase

A report released this week by Bitfinex Alpha showed that the supply of inactive Bitcoin has dropped significantly in more than a year, suggesting that long-term Bitcoin holders will either continue to reduce their holdings or move their assets off the exchange. Analysts at Bitfinex said: “The fundamentals of Bitcoin price dynamics are this week’s halving. As the event approaches, the amount of Bitcoin outflows from CEX has increased significantly, and the inactive Bitcoin supply has not changed in more than a year. decreased to an 18-month low.” The report noted that Bitcoin holders are currently behaving similarly to what happened in December 2020, just before Bitcoin surged higher, adding: “This pattern suggests we may be entering a similar phase of growth.” (The Block)