Bitcoin’s hot supply has surged to nearly $40 billion as new investors pour in. Glassnode reported a significant uptick from local lows, although daily active addresses indicate the overall market recovery is still in progress. Caution remains necessary as speculation rises with new holders despite not yet having a full bull market comeback.
Bitcoin’s so-called “hot supply” is currently soaring, nearing $40 billion, largely due to a wave of new investors joining the ranks as the price pushes close to $95,000. This newfound activity primarily comes from speculative capital, which has more than doubled in just five weeks. Interestingly, even with an uptick in these movements, overall active addresses have yet to show the hallmark signs of a bull market recovery.
On April 29, on-chain analytics firm Glassnode highlighted this surge in hot capital through a thread on platform X. They explained that the volume of Bitcoin that changed hands up to a week ago has risen significantly, reaching levels not seen since early February. This trend signals a resurgence of short-term holders and, ostensibly, a spike in speculative investment.
In the past week, hot capital—defined as Bitcoin holdings transferred recently—has jumped over 90%, adding $21.5 billion since local lows in late March. Glassnode noted that the hot capital bottomed out at $17.5 billion on March 23. The rapid growth in this metric indicates a swift transition from inactivity towards speculation among newer investors in the market.
As the data pours in, there’s chatter about a potential bull market revival, especially as STH investors start to see profits at current price levels. Nevertheless, Glassnode points out a cautionary note—it’s too early to declare a full-fledged bull market is underway. Despite signs of early enthusiasm, or FOMO, the number of daily active addresses hasn’t reached healthy levels, suggesting that genuine engagement with the network has yet to fully recover.
In their latest “Market Pulse” analysis released April 28, Glassnode stated indicators are improving. The hot capital share shows an upward trend and other metrics like the Percent Supply in Profit and NUPL are also on the rise. However, despite these metrics hinting at a rebounding market, the ongoing suppression of daily active addresses raises concerns about the sustainability of this trend.
Earlier this week, there was discussion surrounding the risks of FOMO in relation to Bitcoin’s price recovery—suggesting that while the atmosphere appears positive, investors should remain vigilant. This article doesn’t aim to provide investment advice; every move comes with inherent risks, and those interested should do their own research.
Furthermore, an analysis from Axel Adler Jr. on April 29, from the onchain analytics site CryptoQuant, adds depth to these observations, although the specifics were not detailed in the report here. It’s important to keep an eye on these developments as Bitcoin continues its intricate dance in the financial markets.
