Grab Your Pot of Gold: Only 12% of Bitcoin (BTC) Supply Up for Grabs

"Bitcoin HODL Waves Chart Reflects Long-Term Investor Confidence Amidst Market Volatility"

A recent Glassnode chart has provided valuable insights into the behavior of Bitcoin investors over time. The chart, known as HODL Waves, uses different colors to represent the various periods that Bitcoins have been held. The predominance of cooler hues in the chart indicates that a significant majority of Bitcoin has not been traded or sold for extended periods. This reinforces the narrative of scarcity surrounding Bitcoin, as it suggests that a large portion of the cryptocurrency is being held onto by investors.

The scarcity principle plays a significant role in the value of Bitcoin. As the market grapples with the fact that only 12% of Bitcoin is actively circulating, the principle of scarcity suggests that the value of the cryptocurrency is likely to increase. According to Economics 101, as a commodity becomes rarer, the demand for it increases, putting pressure on its price. With only a small fraction of the Bitcoin supply left for potential buyers, the competition to acquire the cryptocurrency is expected to intensify.

Another chart provided by Glassnode offers a snapshot of Bitcoin’s price action. This chart shows an upward trajectory, with the price of Bitcoin supported by increasing moving averages. Market analysts consider this to be a bullish indicator, suggesting that the market is responding positively to the scarcity of Bitcoin. It further reinforces the growing momentum of Bitcoin as it continues to rise within its bullish channel.

The overall narrative is clear: Bitcoin is becoming an increasingly rare asset. As more of the cryptocurrency’s supply becomes illiquid, those looking to purchase Bitcoin may face stiff competition, which is likely to drive prices even higher. The market has spoken, and it is not just about who wants to buy Bitcoin but also about who can afford to buy it.

It is important to note that this article was originally published on U.Today, a reputable source for cryptocurrency news and analysis.

Martin Reid

Martin Reid

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