Unprecedented Scarcity in This Bitcoin Cycle: What Does It Mean for Investors?

FinKindle

21 Oct 2023 — 1 min read

Bitcoin is experiencing an extraordinary moment with some nice pumpimentals today, and we can't let this pass without diving deep into what's happening. According to recent data, only 14% of Bitcoin holders are in it for the short term. That's right, a historic low! The remaining 86%? They're holding onto their Bitcoins, creating an unprecedented level of scarcity in the market.

Why This Matters?

The long-term holding trend has made the liquid supply of Bitcoin extremely limited—only about 2.3 million Bitcoins are available. This scarcity is not just a buzzword; it has several implications for investors like you and me.

Increased Demand, Limited Supply

In Economics 101, we learned that price is determined by supply and demand. With an incredibly limited liquid supply, we could potentially see price hikes that reach astronomical levels, especially as more institutions get into the Bitcoin game. It's the simple law of supply and demand its really that simple.

FOMO - Fear of Missing Out

As the news of this scarcity spreads, more people might want to jump on the bandwagon. And if that happens, those holding their Bitcoins could see substantial profits. But remember, the landscape of crypto is volatile be careful with any investments.

What Should You Do?

If you're looking to enter the Bitcoin market, now might be a good time to consider long-term strategies. Leading upto the halfing its a great time to get in. Rember even some of the largest bitcoin holders such as Michael Sailor from Microstrategie average buy price is not far of current prices.

For those already holding Bitcoin, it might be wise to hang tight and perhaps even consider accumulating more if your investment profile allows it.

Final Thoughts

The data doesn't lie: scarcity in Bitcoin is real, and it's here. Whether you're a seasoned investor or new to the game, these are exciting times in the crypto universe.

Stay tuned for more updates and remember, invest wisely! Subscribe for more useful info!

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