Bitcoin Bulls Emerge as 81% Supply Locks Up, IFP Turns Bullish
The Bitcoin market is seeing two bullish signals emerge at once, according to recent data. The first signal comes from the fact that 81% of Bitcoin supply has not moved for more than six months, a figure that has fueled talk of a potential supply shock.
However, experts caution that this inactivity does not necessarily translate to a guaranteed price outcome. Rather, it suggests that available coins are becoming increasingly locked up, waiting for demand to return strongly enough to absorb them.
The second bullish signal comes from the Inter-exchange Flow Pulse (IFP) indicator, which has formed a golden cross with its 90-day moving average and turned bullish. The IFP measures BTC inflows into derivatives exchanges, and current data shows that these inflows are above the 90-day average, indicating increasing capital flows.
Historically, Bitcoin has recorded significant rises when the IFP produces bullish signals, although this does not guarantee another rally. For now, the combination of dormant supply and a renewed bullish IFP signal gives traders two closely watched signals as the market looks for its next major move.