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At the time of writing, Bitcoin is trading at US$18,626 and has a market capitalization of US$345 billion. The world’s largest cryptocurrency is on a cliff above ATH (all-time high) in the price chart. Given this development and expectations, it’s interesting , Bitcoin is still leaving the exchange .
Here, the story that led to the price increase is a “narrative of short supply”, and the current total circulation of bitcoin on the exchange has just exceeded 18.5 million .
More interestingly, as there are still nearly 2.5 million bitcoins to be mined, the number of bitcoins proposed for exchanges exceeds that of bitcoins mined every quarter , which strongly supports the shortage of supply on spot exchanges.
In the past quarter, the number of active Bitcoin addresses has increased significantly, but scarcity has met the growing demand . In fact, the profit taking of other mainstream cryptocurrencies such as XRP, Chainlink and Litecoin can make up for the decrease in Bitcoin reserves.
Due to their high correlation with Bitcoin, the price increase of these mainstream cryptocurrencies has caused their market value to rise simultaneously. In fact, the data on these tokens consistently show their enthusiasm and optimism in the market .
Profit opportunities in other cryptocurrencies may be an important motivation for institutional and retail traders to maintain HODLing, which makes Bitcoin unique compared to other alternative assets in the portfolio. Unlike the situation where gold production doubled to meet demand, Bitcoin production was cut in half , which may be the key to exponential price increases, and price increases eventually caused Bitcoin prices to fall by half to a record high.
According to the hourly chart of unused bitcoins by Whalemaps, this is not all, the cumulative price of whales with more than 10,000 BTC exceeds $12,000 and is still going on. In fact, even at current prices, the whale’s Bitcoin accumulation continues to increase.
Redefining HODLing at a price of $18,000, more and more traders are unwilling to give up their Bitcoin. Some might say that this is the result of the challenging financial situation caused by the COVID-19 pandemic, and it may also rekindle trust in the Bitcoin narrative.
If the price of Bitcoin continues to stay above $18,000 for more than 72 hours, then Bitcoin will face a new ATH. Moreover, institutions have been preparing for this. In fact, the current market value of Bitcoin almost exceeds the total market value of JP Morgan and Bank of America.
Bitcoin leaving the exchange is a sign of confidence in Bitcoin as an asset and a sign of growing trust and maturity . Contrary to the 2017 narrative, it seems that institutions are the main driving force behind this trend.
The original text comes from ambcrypto, compiled by Blockchain Knight, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.