Bitcoin Price Rally Continues as Sellers Exhausted, Institutional Buyers Return

On-chain data shows long-term holder supply in Bitcoin has hit an all-time high of 15 million BTC this summer, suggesting selling pressure is nearly exhausted and leaving room for further price upside.

Mitchell Askew, Head of Blockware Intelligence, notes that the number of inactive coins is a positive sign for the market, as it implies that sellers are holding onto their Bitcoin rather than selling. This could lead to increased demand and higher prices in the future.

The failure of the Clarity Act and a recent Fed rate hike might have been expected to negatively impact Bitcoin's price, but instead, it has continued to rally. Askew attributes this to returning institutional buyers, as evidenced by Bitcoin ETF inflows. However, he also notes that there are mixed implications for mining economics and broader crypto adoption due to factors such as the breaking of a four-year halving cycle, AI data centers pulling compute from mining, and a hash-rate bear market.