TechFlow reported, according to the Bitfinex Alpha report, that the supply of inactive Bitcoin has significantly decreased after remaining unchanged for over a year, indicating that long-term holders are either continuing to sell or moving assets out of exchanges.
Bitfinex analysts said: "Underpinning Bitcoin's price dynamics is this week's halving event. As the halving approaches, the outflow of Bitcoin from centralized exchanges has notably increased, and the supply of long-unmoved Bitcoin has dropped to its lowest level in 18 months."
The report added that current behavior among Bitcoin holders resembles the situation in December 2020, just before a significant market upswing. "This pattern suggests we may be entering a similar growth phase," analysts noted.
