The Critical Bitcoin (BTC) Shortage Is Reportedly Fueling The Crypto Rally
This is a really exciting time and also a stressful one for all crypto enthusiasts and holders. Bitcoin has been embracing the bulls since back in April, and now, no one knows where the price can go.
There’s a lot of speculation regarding the BTC’s price and some experts believe that we should be expecting it to hit $10k and unleash the FOMO to the mainstream.
Bitcoin might have already hit the mainstream
More than that, the fact that Bitcoin was said to have already hit the mainstream following Microsoft’s latest move is also fueling tons of excitement.
This year has been said to be the year of crypto adoption, and this might be happening as we speak.
Bitcoin’s increasingly limited supply
Now, senior market analyst at eToro Mati Greenspan just said that Bitcoin’s increasingly limited supply is the primary reason for which BTC has been rallying this year.
Greenspan sent a brand new note to clients and highlights the fact that BTC’s already finite supply and the upcoming halving are the main catalysts of the bulls, Bloomberg notes.
“The recent surges in Bitcoin are mainly based on the supply side. There’s already a shortage of Bitcoin in the world, and with the halving event coming up next May, the countdown to even less supply has already begun.”
Whales have been reportedly accumulating BTC since August 2018
More than that, some new research from digital assets research firm Diar supports Greenspan’s theory and highlights that whales have been accumulating BTC since August of last year.
“Over 26% of circulating supply, $36 billion worth of Bitcoin, now sit in addresses that have a balance of 1000-10k BTC. In August 2018 when Bitcoin was also at $8,000, these ‘Firm Size’ addresses held under 20% of the circulating supply showing a sharp accumulation of nearly 7% in less than a year.”
This research also shows that there’s an increase in BTC buying from retail investors.
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