How Shrinking Short-Term Supply Of Bitcoin Is Affecting The Asset’s Price
16 Septiembre 2021 - 12:00PM
NEWSBTC
This year has been marked by numerous lows for bitcoin. The digital
asset has seen yearly lows in the exchange reserves, transaction
fees, and now, the short-term supply of bitcoin is down. The
short-term supply has been shrinking for the past year. With
declining volumes showing trends that have not been seen in the
past five years. Given the low volume of bitcoin transactions,
which has led to low transaction fees, only few bitcoins are moving
around the network. One And Three-Month Lows Show Shrinkage Bitcoin
is no longer being spent as it was in the past. One of the leading
ideas behind the creation of the digital asset was so it could
double as a currency, one which was not controlled by any one
person or entity. Early adopters stuck to this initial vision.
Using BTC for purchases where they can. Metrics show that in the
past month, 6.8% of the asset’s total supply has been spent. While
the three-month trend shows that only 15.8% of the total supply has
been spent by investors. Related Reading | Bitcoin Suffers As
Mid Caps Cryptos Establish Market Dominance With Wide Margin The
three-month lows show the short-term supply of bitcoin is shrinking
to 2015 lows. In the month of August, short-term supply hit a low
of 6.75%. With a slight increase that only happened after the asset
had recovered back towards the $50,000 mark. But this did not last
long. The supply per month is in a declining trend, indicating that
subsequent months will also see shrinking short-term supply. BTC
supply has continually shrunk for the past three months | Source:
Arcane Research How Short-Term Supply Affects Bitcoin Price
Although low, the declining short-term supply of bitcoin does spell
good news for the asset. It indicates that investors are still
holding on to their coins, showing bullish sentiment amongst the
investor community. It also shows that bitcoin’s recent gains have
motivated investors to hold their funds. Instead of moving it onto
exchanges to sell and cash out their gains. Related Reading
| New To Bitcoin? Learn To Trade Crypto With The NewsBTC
Trading Course With hold sentiment on the rise, it will play into
the favor of BTC. The asset’s value is likely to rise with more
investors holding their BTC bags. Increased sell pressure also
motivates new investors to buy into the coins. Simultaneously
motivating old investors to stay and ride out the low periods in
wait for the bull markets. BTC price trading above $48,000 |
Source: BTCUSD on TradingView.com The current trends show declining
short-term supply has happened when the asset has witnessed a crash
or dip in its price. It is obvious that investors are taking
advantage of these price dips to top up their bags. Panic selling
has also dropped dramatically in the market with more understanding
of price movements. Leading to more diamond hands in the market.
Bitcoin, it seems, has entered the era of holding. Featured image
from Master The Crypto, chart from TradingView.com
Bitcoin (COIN:BTCUSD)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Bitcoin (COIN:BTCUSD)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024