About 70% of the BTC of the total supply has been stored for more than 1 year. Bitfinex considered that, with most of the supply idle, “the market is on the brink of an imminent supply crisis.”
Bitfinex, the exchange, confirmed that there has never been such a discrepancy between Bitcoins stored for more than a year. In fact, this figure is 13.3 million inactive BTC compared to 6.1 million new ones. “This trend shows a strong belief in the value of bitcoin,” Bitfinex said.
These data imply that about 70% of bitcoins of the total supply has been stored for more than 1 year. The exchange considered that since most cryptocurrencies are inactive “the market is on the brink of an imminent supply crisis.”
With this critical scenario, he means that fewer coins are available to buy if investors don’t want to sell them.
This is bad? not necessarily. For Bitfinex “this trend, indicative of the prevailing accumulation strategy among long-term holders, shows a strong belief in the long-term value of Bitcoin”.
He warned that such a crisis is not negative for the bitcoin price, quite the contrary. Precisely When faced with a shortage of supply, buyers are willing to pay more to acquire it..
Furthermore, he stressed that this bitcoin scarcity narrative, which he finds attractive to investors, is all the more compelling given that the balance in the exchanges is going down and the issuance of the coin is limited by the halving.
Source: Ambito
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