Bitcoin continues to show bullish dynamics. Against this background, whales are showing increased interest in the currency, buying up BTC. This is fraught with a shortage of coins.
Fundamental factors continue to support the bullish outlook for Bitcoin (BTC), and the price of the cryptocurrency has confirmed this over the past weeks. Meanwhile, wealthy bitcoin whales are fueling demand for BTC even more, actively buying up coins and cleaning up bitcoin stocks on exchanges. This could potentially lead to a supply crisis.
Is Bitcoin Deficit Good?
According to the data BloqportSince the beginning of the year, 211 new wallets have appeared on the market, which store 1000 BTC and more. Meanwhile, stocks of bitcoins on exchanges have reached their lowest level in almost 2.5 years.
#Bitcoin is undergoing a supply-crisis
Since the start of the year, 211 new Bitcoin whale addresses with 1,000 BTC or more were created. However, Bitcoin supply on exchanges is at its lowest level in almost 2.5 years. pic.twitter.com/6TIuiXvXlj
— Bloqport (@Bloqport) February 7, 2021
The volume of bitcoins stored on exchanges has been steadily declining since March 2020. According to CryptoQuant statistics, as of February 6, 2021, this figure was 2.3 million, a marked decrease compared to the beginning of the year.
Meanwhile, bitcoin is not looking to show signs of fading bullish momentum. Immediately at the time of writing, bitcoin is once again moving to historic highs, staging an unexpected rally to the $ 44,800 region.
Institutional Effect
The number of active addresses also signals a positive market sentiment towards cryptocurrency. According to Glassnode, the number of bitcoin crypto wallets registered a new high at around 1.34 million. The previous record was set on December 14, 2017, in the wake of bullish euphoria. Then it amounted to 1.28 million.
Active Addresses: Glassnode
Statistics show that the dynamics of the MTC rate and the number of active addresses are directly related. This may serve as an indication that bitcoin has not yet exhausted its growth potential.
Institutional investors are an important factor behind the bitcoin scarcity. So, recently it became known that the Emerald Mutual Fund owns more than 78 thousand shares of the Grayscale bitcoin trust. Through the same trust, he increased his share of investments in BTC and the investment bank Rothschild Investment to $ 1 million.
In total, according to Bitcoin Treasuries, the Grayscale bitcoin trust controls more than half of all digital assets held on the company’s custodian services. At the time of writing, Grayscale manages 649,130 BTC.
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