BTC Supply Volume Reaches 21-Month Low

04/02/2023 19:37 • Metaverse & Beyond • 67 views

It is reported that the supply volume of BTC in the last active 6 to 12 months reached 1688273.642 BTC in the past hour (1d MA), a 21-month low.

BTC’s last active supply for 6-12 months hit a 21-month low

Bitcoin (BTC) is widely known for its volatile nature, but recent data shows a different story. Reports indicate that the supply volume of BTC in the last active 6 to 12 months has reached 1688273.642 BTC in the past hour (1d MA), a 21-month low.

What Does This Mean for BTC?

The decrease in supply volume indicates that long-term BTC holders have been holding onto their coins, rather than selling or trading them. This could be due to a variety of reasons, such as increased institutional investment, or a rising bullish sentiment in the market.
Furthermore, this trend can potentially lead to a decrease in sell-side pressure on the Bitcoin market, which may ultimately lead to an increase in the price of BTC.

How Does This Affect the Market Dynamics?

When there’s a decrease in sell-side pressure, there’s potential for increased buy-side pressure. This could lead to more buyers than sellers in the market, which could drive up the price of BTC.
Another possible outcome of this trend is that long-term BTC holders could potentially start selling their coins if the price reaches a certain point. This could create a supply shock in the market, leading to increased volatility.

What Factors are Contributing to This Trend?

Several factors could be contributing to this trend. For one, institutional investors are increasingly investing in BTC, which could lead to long-term holders holding onto their coins even more.
Moreover, the COVID-19 pandemic has caused uncertainty in the global economy, which has led to a rise in bullish sentiment towards BTC as a hedge against inflation and economic instability.

Conclusion

The decrease in supply volume of BTC in the last active 6 to 12 months is a significant trend. It indicates that long-term holders are holding onto their coins, which could lead to a decrease in sell-side pressure on the Bitcoin market. This could potentially lead to a rise in the price of BTC.
However, it’s important to note that increased volatility is always a possibility in the cryptocurrency market. Factors such as institutional investment and global economic uncertainty can affect the market dynamics and lead to fluctuations in price.

FAQs

1. What is BTC?
Bitcoin (BTC) is a cryptocurrency that was created in 2009. It operates on a decentralized network, which means it’s not controlled by a central authority like a government or financial institution.
2. What is sell-side pressure?
Sell-side pressure refers to the pressure on an asset’s price from sellers who are looking to sell their assets.
3. What is a supply shock?
A supply shock is a sudden change in the supply of an asset that can cause sudden and unexpected changes in its price.

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