A significant decrease in the inactive supply of bitcoin that has not moved in over a year is indicative of long-term holders either continuing to trim their holdings or moving their assets off exchange, according to this week's Bitfinex Alpha report.

"Fundamental to bitcoin price dynamics is this week’s halving, which as it approaches, has seen a notable surge in bitcoin leaving centralized exchanges, and a decrease in the inactive supply of bitcoin that has not moved in over a year, to an 18-month low," Bitfinex analysts said.

The report added that the current actions of bitcoin holders mirror those seen in December 2020, just before a significant rise in the bitcoin market. "This pattern suggests we may be entering a similar growth phase," the analysts added.

Bitcoin exchange …