New data demonstrates that the need for Bitcoin among HODLers is surpassing miner production for the first time ever and by a large margin.

The demand for Bitcoin from accumulation addresses is higher than the amount miners are issuing. According to CryptoQuant's head of research, Julio Moreno, the demand for the cryptocurrency has been increasing rapidly recently. The chart shared by the analyst illustrates the demand from the "permanent holders."

"Permanent holders" are owners of "accumulation addresses," which are wallets that have only a history of buying Bitcoin and never selling it. These investors are not known to sell, so the supply they accumulate could become illiquid in the future. Buying from these HODLers could be a positive indicator, suggesting a decrease in the available trading supply of Bitcoin.

The chart shows the growth in balance of these HODLers to measure demand. It is evident that accumulation addresses significantly increased their purchases in 2020 and maintained this growth in the following years. Moreno also included Bitcoin "miner issuance" data in the same chart, tracking the total amount of Bitcoin minted by miners.

Miners earn Bitcoin as rewards when they solve blocks. These rewards are given in Bitcoin and increase the cryptocurrency's circulating supply. The graph indicates periods where issuance remains consistent for a few years before suddenly dropping, mainly due to the halving event.

Halving is a routine occurrence on the Bitcoin network where block rewards are halved every four years. The next halving is approximately ten days away. Despite demand from accumulation addresses being high since 2020, it had not exceeded miner issuance until recently.

However, the growth in accumulation addresses has surged, surpassing both miner issuance and maintaining a higher value. This indicates that HODLers are purchasing more Bitcoin than miners are producing. This data illustrates the robust demand for Bitcoin in recent times, considering there are other types of buyers beyond HODLers.

The increase in demand can be attributed to the introduction of Bitcoin spot exchange-traded funds (ETFs), offering traditional investors an alternative way to invest in the cryptocurrency.

Currently, Bitcoin is trading at approximately $68,400, with a more than 4% increase over the past week.