In the rapidly evolving world of cryptocurrency, Bitcoin is once again making headlines due to a recent supply shock. The sudden decrease in the Bitcoin supply is attributed to various factors ranging from Bitcoin miners holding onto their coins, institutional investors buying up this digital asset, to decreased selling pressure from whale investors.
Adopting a more in-depth perspective, it’s clear that the current Bitcoin supply shock is largely driven by a significant reduction in selling pressure. This phenomenon is primarily due to Bitcoin miners opting to hold onto their coins in anticipation of a price increase, rather than selling them immediately. Institutional investors are also playing a crucial role in the supply shock by purchasing large amounts of Bitcoin, thereby reducing its availability in the open market. The interplay of these factors is creating a Bitcoin supply crunch, which is likely to impact the cryptocurrency’s price dynamics in the coming months.
