Bitcoin Primed for ‘Supply Shock’
Bitcoin’s supply is at a five-year low, preparing the asset for a potential “supply shock,” according to Matt Weller, global head of research at Forex.com.
Exchange balances have dropped to 2.3 million, the lowest since April 2018, according to Glassnode data.
This is down from 2.6 million a year ago and 3.2 million at its peak in May 2020. Additionally, there are around 3 million tokens that haven’t been moved in ten years, compared to the current overall supply of 19.5 million and bitcoin’s maximum-ever supply of 21 million.
Weller suggests that spot ETFs could fundamentally alter the supply and demand picture for bitcoin, making it available for a new set of investors. This is particularly important as bitcoin has regained its “uncorrelated asset” lure by decoupling from equities and rallying as U.S. stocks enter correction territory.
(With inputs from Shikha Singh)
You need to login in order to Like
