More and more BTC is becoming illiquid, being locked away in cold storage
Bitcoin is soon going to face a supply crisis, if it's not already
The price of bitcoin is getting easier and easier to push higher as more and more supply is being removed from exchanges.
Ever since the beginning of this year, we have seen a marked decrease in the amount of bitcoin sitting on exchanges.
It's been moving off exchanges into hard wallets and cold storage, places where it is a lot less likely to be sold.
Check out the trend:
(Source: https://twitter.com/glassnode/status/1344020562734145538/photo/1)
Since the start of this year over 1 million bitcoin have moved from the liquid to the illiquid category.
Extremely bullish...
As long as this trend continues, it is extremely bullish for the price of bitcoin.
This trend in supply moving to cold storage has moved in correlation with the price of bitcoin going higher.
Which makes a lot of sense...
As the supply is removed, there are less and less sellers to counter the incoming demand.
If this pattern continues we are going to see some very large moves in bitcoin, possibly gap type moves as exchange struggle to find enough supply to meet demand.
They are forced to rip prices higher in order to find some sort of equilibrium in the market where supply can offset incoming demand.
At some point this dynamic will change, but in the meantime as long as the supply on exchanges keeps going down, the price is going to keep going higher.
Stay informed my friends.
-Doc
Posted Using LeoFinance Beta
It’s all about supply and demand I’m still seeing more gains for a bit longer while everyone tries to snap some up.
Locking biycoin in cold storage seems to be beneficial as to the price of bitcoin.
I mean with this, less supply will lead to a skyrocket in the price.
I pray this keeps turning out well for bitcoin.
Posted Using LeoFinance Beta
Yep, I'm pretty sure this bull run isn't over until Coinbase has at least $100 worth of gap between buyers and selling and the price is sloshing back and forth. Volcano blow-off top incoming.
Posted Using LeoFinance Beta
As long as supply keeps being removed, up we go!