Bitcoin “Hot Supply” approaches $400 billion as new investors are flooded with $95,000

    Crypto AI Updates04 mins


    Key Points:

    • Bitcoin’s recently operating supply segment is growing as “speculative capital” flows in as prices rise.

    • “Hot Supply” doubled against the local lows in March in just five weeks.

    • The active address number has not yet mimicked the classic bull market comeback.

    Bitcoin (BTC) short-term holders (STH) returned to the game as “speculative capital” entered the market.

    On the X-thread on April 29th, Onchain Analytics Firm GlassNode reported a surge in Bitcoin’s so-called “Hot Capital.”

    Bitcoin sees “surge in capital sales”

    New investors are entering the market as BTC Price Action circles the highest level in months.

    GlassNode reveals that the total of the last coins moved a week ago reached its biggest since early February.

    “This metric is a proxy for speculative capital that captures short-term holder activity and enters the market,” he explains.

    Over the past week alone, Hot Capital has grown by more than 90%, up nearly $40 billion. Hot Capital has increased by $21.5 billion since its local low in late March. This is a “surge in capital sales,” which highlights a sea-change in market sentiment.

    “BTC Hot Capital bottomed at $17.5 billion on March 23rd – the lowest level since December,” GlassNode summed.

    “In just five weeks, it has added more than $21.5 billion, suggesting a rapid shift from dormant to speculation for new market entrants.”

    Bitcoin “Hot Supply” data. Source: GlassNode/X

    BTC Bull Market’s comeback in progress

    As Cointelegraph continues to report, STH investors have recently returned to gross profits as prices fall near $95,000.

    Related: Bitcoin in “Critical Zone” when Triple Breakout meets $93.5K Support Battle

    However, analysing network-wide participation, GlassNode suggests that a full-bull market comeback has not yet been made.

    “Early signs of FOMO are emerging, with hot capital shares increasing, and profitability metrics such as profit (86%) and NUPL (0.53) supply percentage (0.53) have been significantly expanded,” he wrote in an introduction to the latest “Market Pulse” analysis piece released on April 28th.

    “However, while on-chain activity such as transfer volume and fees is recovering, daily active addresses remain suppressed, suggesting that full organic network engagement is still being restructured.”

    Bitcoin Active Address (simple moving average over 7 days). Source: GlassNode

    Earlier this week, other sources reported on the potential dangers of “FOMO” in regards to a permanent BTC price recovery.

    This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.