Bitcoin Long-Term Holders Control Record Amount of BTC Supply
If you’re interested in Bitcoin, you should know that it’s becoming scarcer than ever. The latest data from on-chain analytics firm Glassnode reveals that a significant portion of the available BTC supply is locked up in long-term storage. In fact, Bitcoin’s long-term holders (LTHs) now control more than 76% of the BTC supply, which is a record high.
This achievement is unprecedented in Bitcoin’s history and has important implications for the market. With less liquid supply available, the same number of people are bidding on fewer coins, which can lead to increased demand and upward pressure on price.
Bitcoin’s Supply-Demand Dynamics
Charles Edwards, founder of Capriole Investments, points out that the reduced supply coupled with increasing demand should further drive up the price of Bitcoin. This trend is particularly significant considering that Bitcoin’s supply is currently constricted going into a halving event.
While demand for Bitcoin fluctuates, the overall trajectory is clear: as supply decreases and demand either remains stable or increases, prices are likely to rise due to basic supply-demand economics.
Speculators Remain on the Sidelines
In addition to long-term holders, speculators are also crucial players in the Bitcoin market. However, recent data shows that BTC speculators have been relatively inactive. The realized price of short-term holders (STH) has been a support level throughout this year, with BTC/USD breaking above it being seen as a bullish signal.
Overall, as Bitcoin becomes scarcer and long-term holders increase their control over the supply, it is expected that prices will continue to rise. This presents opportunities for both long-term investors and speculators alike.
Hot Take: Bitcoin’s Increasing Scarcity Points to Higher Prices
The increasing dominance of long-term holders in the Bitcoin market signifies a shift towards scarcity. As fewer coins are available for other participants, the demand for Bitcoin is likely to rise, leading to higher prices. This trend, combined with a reduced supply and upcoming halving event, sets the stage for a potential bull run in the Bitcoin market. Whether you are a long-term investor or a speculator, it is important to keep an eye on these developments and consider how they may impact your investment strategy.
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