Remember Uptober? BTC had a massive rally in October 2021 and reached an all-time high at $69k. Despite all the hype, the initial reason that caused this rally was a huge Bitcoin supply shortage coordinated by giant mining companies. As we stand, the uncertain future as well as ever piece of bad news on God’s green earth is telling us that we’re in a bear market. The stock markets all over the world are taking soccer punches in the face while commodities and gold are reaching all-time highs. However, there is a bit of news that is fundamentally critical and could be a sign for a big surge for Bitcoin on the horizon. The latest numbers are showing signs of an upcoming Bitcoin supply shortage much like October 2021.
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Bitcoin Supply Shortage?
According to Santiment Bitcoin supply in exchanges is going down as users are taking their assets off the platforms. Essentially, this considerable outflow could seriously reduce the selling pressure in the future.
In a recent report, Santiment indicates that the holders are moving out of exchange protocols. This trend is signifying massive appeal to hold for long-term and subsequently less BTC ready to be sold. Furthermore, exchange platforms are seeing the lowest ratio of Bitcoin supply in at least three years.
“Bitcoin’s cumulative supply sitting on exchanges has continued its encouraging slide downwards, reaching all the way to 10.76%.
This is the lowest ratio of BTC supply on exchanges since November 2018. Generally, this continued decline implies a decreased risk of future selloffs.”
Genesis 1:21
Similarly, BTC whales are pretty much doing the same thing. Recently, the world’s biggest non-exchange BTC whale has been accumulating more of what he already has.
This specific wallet actually holds the largest amount of BTC next to giant exchanges like Binance and Coinbase. And guess what he (or she) did during the dip? Well, the unknown investor added 730 new Bitcoins to his wallet. In total, this anonymous investor holds approximately 126,000 BTC (literally jealous) worth over $4.9 billion at the time.
Whales will be whales, but this hasty accumulation as well as the reduced Bitcoin supply can be a sign for future rallies. At this point, we are certainly in a bear market but things can change quickly. Be it for diversification, or just the benefit of secured investments, growing interest in holding BTC for the long run is always a good sign.
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