Bitcoin 'hot supply' nears $40B as new investors flood in at $95K

Key points:

• Bitcoin’s most recently-moved supply segment is increasing as higher prices see an influx of “speculative capital.”

• “Hot supply” has doubled in just five weeks versus local lows in March.

• Active address numbers have yet to mimic a classic bull market comeback.

Bitcoin (BTC) short-term holders (STHs) are back in the game as a “speculative capital” enters the market.

In an X thread on April 29, onchain analytics firm Glassnode reported a surge in Bitcoin’s so-called “hot capital.”

Bitcoin sees “surge in capital turnover”

New investors are entering the market as BTC price action circles its highest levels in several months.

Glassnode reveals that the sum of coins which last moved up to a week ago has reached its largest figure since early February.

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

In the past week alone, hot capital has shot up by over 90% to near $40 billion. Since local lows in late March, hot capital has increased by $21.5 billion, a “surge in capital turnover” which underscores a sea change in market sentiment.

“BTC hot capital bottomed at $17.5B on 23 Mar - its lowest level since Dec,” Glassnode summarizes. 

“In just 5 weeks, it has added over $21.5B, suggesting a rapid shift from dormancy to speculation among newer market entrants.”Bitcoin “hot supply” data. Source: Glassnode/XBTC bull market comeback in progress

As Cointelegraph continues to report, STH investors have recently returned to aggregate profit as price hovers near $95,000.

Related: Bitcoin in 'critical zone' as triple breakout meets $93.5K support battle

Analyzing overall network participation, however, Glassnode suggested that a full bull market comeback has not yet taken place.

“Signs of early FOMO are emerging, with the Hot Capital Share ticking higher and profitability metrics like Percent Supply in Profit (86%) and NUPL (0.53) expanding notably,” it wrote in an introduction to its latest “Market Pulse” analysis piece released on April 28.

“However, while on-chain activity such as transfer volume and fees are recovering, daily active addresses remain suppressed, suggesting that full organic network engagement is still rebuilding.”Bitcoin active addresses (7-day simple moving average). Source: Glassnode

Earlier this week, other sources reported on the potential dangers of “FOMO” when it comes to an enduring BTC price recovery.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

New analysis on April 29 from Axel Adler Jr., a contributor to onchain analytics platform CryptoQuant, shows