The Week On-Chain 42, 2024
A notable divergence between supply and demand is emerging, with the market being range-bound for over seven months. With low volumes across on-chain and futures markets and a HODLer-dominated environment, the scene is set for heightened volatility in the near future.

Executive Summary
- The demand side of the market has declined notably since the March ATH, with investor attention thinning as the market chops sideways within this price range.
- On the supply side, available coins are also constricting, with several measures of ‘active supply’ compressing to relatively low levels.
- Historically, tightness in the Bitcoin supply side has been a precursor for a regime of heightened volatility.
- It often describes an equilibrium being reached between the wealth held by new demand and existing HODLers, which tends not to last for very long.

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