The post Bitcoin (BTC) Sees Supply Tightening Amid Accumulation and Volatility Trends appeared on BitcoinEthereumNews.com.

Alvin Lang
Jul 11, 2025 08:30

Bitcoin’s supply tightens as accumulation pressures rise, while volatility builds in both on-chain and derivatives markets, according to Glassnode’s latest insights.

Bitcoin’s market dynamics are currently shaped by strong accumulation pressures and a tightening supply side, according to the latest insights from Glassnode. As investors increasingly favor holding over selling, the market is experiencing a subtle yet significant build-up in volatility, both on-chain and in derivatives markets. Accumulation Trends and Supply Dynamics Investors are showing a marked preference for accumulation, with Long-Term Holder (LTH) supply reaching new highs. Notably, small to mid-sized investors, categorized as Shrimp (<1 BTC), Crabs (1–10 BTC), and Fish (10–100 BTC), are collectively acquiring over 19.3k BTC per month. This rate significantly surpasses the monthly issuance of 13.4k BTC, indicating a tightening in Bitcoin’s supply. According to Glassnode, this behavior suggests a strong belief among investors in the value proposition of Bitcoin at current price levels, encouraging them to hold rather than distribute their holdings. This trend is further evidenced by the growing LTH supply, which is outpacing the new coin issuance rate, signaling a general tightening of the supply-side dynamics. Volatility Indications Across Markets Despite a relatively stable price range, volatility expectations are increasingly compressing, suggesting potential for future price swings. Realized Volatility metrics show a contraction across multiple timeframes, indicating that the market is coiling within a narrow consolidation range. Historically, such compressions have preceded significant market movements. Additionally, At-the-Money Implied Volatility (ATM IV) in options markets has declined, suggesting that traders are not anticipating immediate high volatility. However, past patterns indicate that subdued volatility expectations can often precede sharp market moves, serving as a contrarian signal. ETF Market Impact Despite a recent slowdown in ETF inflows, the total Assets…

---

Filed under: News - @ July 11, 2025 9:24 am