Bitcoin supply shortage hits all-time high

Our experts note that short-term investors currently hold 2.33 million bitcoin in their wallets, which is the lowest in several years

Amid the approaching halving of bitcoin (BTC), which is expected in April 2024. That now the supply deficit of the first cryptocurrency has reached an all-time high. And this is what Glassnode analysts write about in a new report.

According to the authors of the report, the upcoming halving represents an important fundamental, technical. And even a “philosophical” milestone for bitcoin. The total supply of bitcoin is becoming increasingly scarce. And circulating supply is already at historic lows.

At the moment, the wallets of short-term investors contain 2.33 million bitcoin coins. And that is the minimum for several years. As a rule, it is this volume that can be considered the real supply on the market. Since statistically it is short-term investors are ready to part with their coins in the short term.

In addition, experts record a constant outflow of coins of the first cryptocurrency from the wallets of exchanges. At the moment, the number of bitcoins on exchanges has reached a minimum since March 2020.

Wallets noted by analysts as long-term holders, on the contrary, continue to actively accumulate bitcoins. And thereby contributing to the market’s declining liquidity.

Our experts note that in October, Glassnode analysts estimated that long-term investors accumulate $1.35 billion in bitcoins every month. The experts also emphasized that the total number of bitcoins owned by long-term holders reached a new all-time high of more than 14.8 million BTC. And that makes up about 76% of the cryptocurrency’s circulating supply.