Thursday , February 25 2021
Home / Commodity Blog / Bitcoin’s Active Supply May Affect Price Rally

Bitcoin’s Active Supply May Affect Price Rally

Summary:
Since the start of the present price rally, Bitcoin’s active supply has played a crucial role. Has the king cryptocurrency traded around ,000, the amount of active supply from 7Y to 10Y hit a low of 1.42 million Bitcoin. This is very different from what was obtainable before the new ATH on February 18. This may be because after booking unrealized profits and losses at the previous all-time high, traders and investors are holding on to their Bitcoin through the current phase of the market cycle. Most BTC leaving exchanges are now going into private wallets and cold storage. This explains the shortage of supply of BTC in circulation. It’s likely that the Bitcoin shortage has been fueling the bull rally since October 2020. After remaining range-bound for a long time, the price

Topics:
Ibrahim Anifowoshe considers the following as important: ,

This could be interesting, too:

Mark Stevenson writes .6 Billion Liquidated Across Exchanges As Bitcoin Drops Below K

Mark Stevenson writes Over 63,000 Bitcoin Options Will Expire on Friday – What Does This Mean?

Vladimir Vyun writes Video: Platinum Price Forecast for March 2021 – Will the Rally Continue?

Mark Stevenson writes Tesla Made Billion Profit from Bitcoin Investment

Since the start of the present price rally, Bitcoin’s active supply has played a crucial role. Has the king cryptocurrency traded around $52,000, the amount of active supply from 7Y to 10Y hit a low of 1.42 million Bitcoin.

This is very different from what was obtainable before the new ATH on February 18. This may be because after booking unrealized profits and losses at the previous all-time high, traders and investors are holding on to their Bitcoin through the current phase of the market cycle.

Most BTC leaving exchanges are now going into private wallets and cold storage. This explains the shortage of supply of BTC in circulation. It’s likely that the Bitcoin shortage has been fueling the bull rally since October 2020.

After remaining range-bound for a long time, the price of the pioneer cryptocurrency broke a new ATH when it broke the $46,000-range hurdle. Bitcoin reserves on spot exchanges are at nearly the same level as at the end of January 2021. It is also notable that stablecoin reserves on spot exchanges have significantly increased.

The number of addresses holding between 1,000 and 10,000 BTC has grown since the last bull run. Wallets that own below 1,000 BTC are also buying more and adding retail demand on spot exchanges. With the rise of Bitcoin purchase, the demand for stablecoins has also surged. For example, the USDC inflow volume (7-day moving average) reached an all-time high of 7.3 million USDC.

Bitcoin’s Active Supply May Affect Price Rally

The inflow volume of stablecoin points to the rise of Bitcoin price hitting a new ATH. An increase in Bitcoin scarcity may mean that the price of the coin will continue to rise in the coming months. A shortage of supply will be caused by institutional investors who have taken to acquiring large amounts of Bitcoin at once. It was earlier noted that institutional investors now hold 3% of BTC’s circulating supply.

As Bitcoin continues to permeate the corporate world, institutional investors and large holders will further reduce the number of BTC in supply. Miners are expected to mine 341,640 BTC annually, which is a mere $16.3 billion. This means that the current bull run is just starting. The price of the king cryptocurrency is expected to more than double.

If you have any questions and comments on Bitcoin today, use the form below to reply


© IbrahimAnifowoshe for Commodity Blog, 2021. | Permalink | No comment |
Published under: Bitcoin, Forecasts

Leave a Reply

Your email address will not be published. Required fields are marked *