The volume of Bitcoins in circulation fell to a minimum in 19 months
The volume of the most famous cryptocurrency Bitcoin, which are in free circulation, fell to the lowest level in the last 19 months.
Bitcoin supply in the market continues to fall
At the beginning of the year, this indicator rose by 16%, and then fell by the same value. In the past, this phenomenon has happened to Bitcoin only twice, and in both cases preceded the future rise in the price of BTC.
The current situation means that cryptocurrency holders prefer to keep their coins in their wallets than to take part in active trading. The same can be said for miners who keep mined Bitcoins in their wallets instead of selling.
Fewer active wallets
The same dynamics is observed in the number of active bitcoin wallets. If at the beginning of the year one could observe an upward trend, now this indicator is decreasing. This already happened in 2017, before reaching the historical high of the bitcoin price, which is 20 085 USD per coin, as well as in 2019, before the start of bullish dominance in the market.
Will there be future growth in BTC?
Experts see the prerequisites for the rapid growth of the first cryptocurrency this time too.
"If the demand for Bitcoin continues to grow, and there is no way to increase the supply of this asset, then this means that its price will rise very strongly.", — stated cryptanalyst Lin Elden.