AxelAdlerJr
Bitcoin Supply Shrinks Amid Anticipation of Major Market Events
In late October 2023, the Bitcoin market experienced a notable event as the price hit $34.4K, indicated by a green dot đ˘. At this point, there was a decrease in selling activity from both short-term holders (STH) and long-term holders (LTH). Such simultaneous holding of assets by both groups of investors had not been observed during the current year and is an indicator of a reduction in coin supply in the market. The reduction in supply coincided with growing expectations of the approval of a spot Bitcoin ETF and the approach of the next halving, an event that traditionally increases interest in Bitcoin and can lead to an increase in its value due to rising demand coupled with a decrease in new supply. The decrease in sales from both STH and LTH, combined with positive investor expectations, may create conditions for further increases in the value of the first cryptocurrency.