Bitcoin Supply Tightens In Sign of Continued “Liquidity Crisis”

5fe1ab8e6d06f

Bitcoin’s rally has been marked by strong accumulation by long-term holders. The number of BTC on exchanges has decreased strongly in recent months, despite the rally. Analysts think that this can be attributed to institutional players buying Bitcoin for the long haul. These investments are expected to drive BTC higher over time as the supply of coins on the market decreases. Bitcoin Supply Crisis Begins as Coins Leave Exchanges En-Masse Analysts think that Bitcoin is in the midst of a supply-side crisis as BTC pushes to fresh all-time highs. While some of the recent rally has largely been driven by derivatives buyers, it has clear that there is a large amount of BTC being accumulated via spot exchanges. Rafael Schultze Kraft, CTO of Glassnode, shared the chart below on December 21st. It shows the price of BTC and the supply of Bitcoin on exchanges over a macro time frame. As…

Read the original article here

IF YOU LIKED THIS ARTICLE CLICK SHARE