Bitcoin Short Term Supply Hits 6 Year Low
When one realizes how little Bitcoin there is to be had out there, predictions of $100k and higher are far from outlandish. Diamond hands are holding very strong:
Diamond Hands: 80% Of Bitcoin Circulating Supply Now Owned By Long-Term Holders
A Glassnode report shows that the number of bitcoin long-term holders has hit a new all-time high. A record 80.5% of bitcoin’s circulating supply is now being held in long-term wallets. This comes despite recent downturns that pushed market sentiment into extreme fear. Individual and institutional investors alike have taken declining prices as an opportunity to “buy the dip”.
A report from Bitcoinist highlighted that bitcoin supply had hit a new low. The total amount of bitcoin spent within a three-month period had come out to just 16.6% of the entire circulating supply of the digital asset, a volume that had not been seen since 2015. This showed strong hold sentiment among investors, who are buying more and selling less, and moving their coins to secure wallets to hold it for the long-term.
The declining short-term supply contributes directly to the increase in diamond hands across the market. Bringing into light another interesting trend that showed that investors were going against the grain with bull markets. An Arcane Research report showed that even when bitcoin prices were on the rise, the short-term circulating supply had continued to drop.
A drop in short-term supply over time will lead to a supply squeeze, where there will not be enough supply to feed the demand from crypto investors. This will inadvertently lead to scarcity and will cause the price of the digital asset to shoot up over time.