TronWeekly

Crypto World News

You are here: Home / Archives for bitcoin supply

bitcoin supply

Bitcoin’s Bullish Signal: Supply Reduction Could Boost Prices

by

The prominent analytical platform CryptoQuant provided details of the changing role of Bitcoin. In a recent X post, the platform noted that over the past few years, BTC has not only become a means of payment but also has become an important investment tool. The latest on-chain data presents a notable trend. The number of newly registered Bitcoin deposit addresses on all cryptocurrency exchanges has dropped down to 25,000 from 70,000.

AD 4nXecdab10OiaOyBaeQzEDD SMpHmPWcj8RHZc3VXqqQkoWj1iVo4E f34EhYi0Y2afX8H40if9UMFuNbQtzzc ZoY bH0ZDcHOkhuAU7F FiRYFWlL9s1F2OqX5LURXkpvC8ftlHYlG2ZPCUd28h0yR

According to a recent report, the reduction of the number of deposit addresses to 25,000 is a key sign, which shows that investors are changing their approach to storing their Bitcoins. This paints the picture that sellers are gradually being depleted as holders decide to hold on to their bitcoins. This could be regarded as an indication of future price rise since the investors are not willing to sell their Bitcoins in the market.

AD 4nXf ug3CAQKd

In the light of behavioral economics, this trend shows an increase in confidence among the investors of Bitcoin. This new confidence could be attributed to a number of factors including; one of which is the rise in institutional investors’ investment in cryptocurrencies. When more big investment companies come into the market, they could alter the psychology of the market and the behavior of the retail investors.

Bitcoin Bullish Move Ahed?

This lower inclination to sell may contribute to lowering the supply on the market. Due to this, if demand persists or continues to grow, this shortage of supply could may lead to an increase in the price of BTC. This is certainly a bullish sign for the market, implying that investors are anticipating future values for the Bitcoin to rise.

Also, the reduction of the addresses points out to the market maturity in the field of BTC. There is a possibility that investors will reduce the frequency of trading and turn towards a more consistent approach of investing. This may help to stabilize the market and decrease the level of fluctuations and, thus, contribute to the development of a healthy investment climate.

After the analysis of CryptoQuant, it is possible to notice that the specific tendencies of the BTC market are changing. The drop in deposit addresses is one such metric that paints the picture of the current investor sentiment of holding instead of trading.

This shows that there has been a shift of behavior among the investors since the number of Bitcoin addresses receiving deposits has reduced to 25,000. This shift in sentiment coupled with institutional investment reflects a positive sentiment of future price appreciation for Bitcoin.

Bitcoin ETFs Trigger Potential Supply Shock With Massive $2.05 Billion Acquisition

by

A well-known analyst in the cryptocurrency space, Ash Crypto has recently pointed out a major movement in the Bitcoin space. In a recent X post, the analyst revealed that Bitcoin exchange-traded funds (ETFs) have spent 29,390 BTC in the last ten trading days, which amounts to $2. 05 billion. This rather sizable purchase has elicited concerns and discourse within the crypto sphere regarding its effects on BTC’s market environment.

This buying spree by Bitcoin ETFs was, however, made during a time when the total number of BTC mined was only 5,400. The marked difference between the increasing number of BTC bought by ETF and the limited number of newly generated BTC is a sign of an impending supply shock. This means that out there, the number of people who wanted Bitcoin was much higher than the number of BTC available, something that could greatly affect the value of BTC.

Ash Crypto has gained appreciation among the investors and analyst community by presenting their views. This is especially true given that he raised the possibility of a supply shock to Bitcoin and given that supply shocks could lead to higher prices for the offer. This can be seen as a significant development given the fact that the Cryptocurrency market is rather unstable.

Institutional Surge Fuels Bitcoin’s Adoption

ETFs accumulation of such a significant amount of BTC is a clear sign of an increasing belief in the asset’s credibility and sustainability. It also indicates that large investors are investing in cryptocurrency and thus, making BTC more mainstream investment.

Some have opined that this may signal the start of a new phase of Bitcoin’s optimism characterized by institutional buying and scarcity. Some people disagree with this and say that the market is still volatile and unpredictable, although the current situation is good a lot needs to be learned on the current trends.

The buying of 29,390 BTC by the Bitcoin ETFs in just 10 days has shifted the balance of power and it is much more profound than the 5,400 BTC mined daily. The analyst has pointed out the possibility of a supply shock, which makes him conclude that the Bitcoin price may soar even higher. Following the development of events, market participants would observe how these factors affect the overall dynamics of the cryptocurrency market.

Bitcoin’s supply draws closer as 19M BTC is mined; What next?

by

The world’s most dominant crypto asset Bitcoin achieved a new milestone as its circulation inches closer to its total supply of 21 million. On the 1st of April 2022, 19 million BTC have been officially minted, remaining only two million units of the coin to be mined.

As per data, the event occurred at block height 730002, mined by SBI Crypto, earning ming rewards of ‎6.32 BTC, which is around $293,000 as block revenue.

Screenshot 2022 04 02 185204

In a brief rundown, the first bitcoin was mined in 2009, amidst the great recession which was undoubtedly mined by Bitcoin’s legendary creator, Satoshi Nakamoto. The 18 millionths BTC was mined in 2019, but the 21 millionth won’t be mined until roughly 2140, provided the network sticks to the plan. 

That said, Crypto Twitter erupted with joy with several prominent users commenting on the landmark occasion. Dan Held who is currently the Director of Growth Marketing at Kraken wrote,

Alex Gladstein shared how the asset class has grown over the years and pointed out the scarce element of the coin, while some observed that now is the best time to hold BTC.

Another member noted that the last Bitcoin will be mined in about the year 2140. Others, however, could not resist sharing memes out of the Will Smith Oscar slap incident, depicting crypto haters to be at the receiving end!

In all its seriousness, the event is, without doubt, a significant moment for the BTC community.

2 million Bitcoin left, here’s what to expect

While it took BTC 13 years to mine 19 million coins, the remaining 2 million units of the coin will not be mined until the next 100 years which shows how scarce the currency will get. Another important thing to note is that the block reward would be reduced to half, which will occur in a little over two years.

Experts feel that this scarcity of Bitcoin would help push the price upward, with some predicting a base price of $1 million. Many even believe that the asset could ultimately become a global reserve asset that would push its adoption to greater heights.

93% of Bitcoin is Profitable; How Are the Bitcoin Miners Reacting?

by

Bitcoin is in a state of euphoria over the last few days. The largest digital asset was finally able to overcome its psychological resistance at $10,000 and, at the moment, the asset has sustained a position above the range for more than 24 hours. With Bitcoin ‘s valuation taking a huge step forward, the impact has also transcended its on-chain fundamentals.

bitcoin supply

According to Glassnodes’ weekly report, Bitcoin Global on-chain metric index improved by 8 points, taking up its score to 70 in the charts. Liquidity made minor gains whereas Market Sentiment was brimming high with confidence, registering an improvement of 34 points over the past week.

93% of Bitcoin Supply is in state of Profit

bitcoin exchange net flow

After breaching past the $10k mark, the report suggested that the percentage of BTC supply that was in profit had risen up to to 93%. Only 11 percent of the current supply, if taken out would incur a loss and such a situation was driving the speculators out of the picture.

bitcoin

As observed in the above chart, the improved profitable holdings in Bitcoin were leading towards an increased inflow of BTC to exchanges. It is fairly obvious that users were making the most of the situation, as they were trying to cash when their profitability was on a high after months of stagnation. The desire to sell was quite high as the net flow witnessed by exchanges registered a new high over the past couple of months. The report said,

“After months of bitcoin flowing out of exchanges, the net flow is now seeing its largest hourly spike in over 3 months.”

BTC Miners refusing to Budge

Now, in spite of the high profitability of the BTC supply, Bitcoin miners pictured a surprisingly adamant behavior.

bitcoin minor outflow volume

When Bitcoin appeared to drop back in May, fears of miner capitulation was quite high as analyst expected that whenever Bitcoin reaches past $10,000 again, the miners are most likely to capitalize on the profits.

However, that hasn’t been the situation at the moment. The chart above illustrates that Miner Outflow Volume for Bitcoin has been keeping low in the charts, which suggested underlying confidence in Bitcoin’s potential.

With Miners standing firm in the industry, there is a sense of optimism surrounding BTC at the moment, as the largest digital asset enjoyed its lucrative rally.