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Bitcoin’s Supply Scarcity: The Catalyst for Price Growth?

Bitcoin's Supply Scarcity: A Catalyst for Price Growth? Bitcoin's Supply Scarcity: A Catalyst for Price Growth? The scarcity of bitcoin is believed to be a significant factor in its price trajectory, which could have repercussions for its pricing. According to data from ETC Group and Glassnode, over $146.1 million BTC, worth more than $826 million, …



<a href='https://coinseeks.com/massive-bitcoin-shift-permanent-addresses/' title='Massive Bitcoin Shift to Permanent Addresses: A Signal for Upcoming Bull Run?' >Bitcoin</a>’s Supply Scarcity: A Catalyst for Price Growth?

Bitcoin’s Supply Scarcity: A Catalyst for Price Growth?

The scarcity of bitcoin is believed to be a significant factor in its price trajectory, which could have repercussions for its pricing.

According to data from ETC Group and Glassnode, over $146.1 million BTC, worth more than $826 million, is owned by liquid entities. This is a significant event, as the crypto community grapples with the implications of bitcoin’s substantial portion being tied up.

The bitcoin supply that has been heavily accumulated over the past few years appears to be illiquid, raising concerns about the scarcity of the digital asset.

New investors face increasing difficulty in purchasing bitcoin as the supply becomes scarcer, leading to increased demand and higher prices. In the past, there have been significant scarcities associated with high-priced bitcoin. As a result, market participants are becoming more optimistic about the price of bitcoin now.

It is important to note that bitcoin’s price has not yet reached its all-time high of over $70,000 in the first quarter. The current value of $56,600 is still considered high.

However, the growing scarcity of illiquid bitcoin supply may be the catalyst needed to propel the digital asset to new heights. The concept of scarceness is particularly relevant in relation to bitcoin’s capped supply of 21 million. As more entities enter the market, and more people become part of the asset, so the supply will gradually decline.

This is made worse by the current situation, where a significant portion of the circulating supply is being held by illiquid entities. Experts believe that the growing scarcity of bitcoin could have an outwardly significant effect on its market rate.

As the supply decreases, the asset becomes more uncommon, leading to increased demand and ultimately price.

The outcome may be a self-sustaining cycle, where the scarcity of bitcoin continues to uphold its value, making it an increasingly profitable investment. However, the cryptosphere is not anticipating this development since bitcoin’s 74% illiquidity means that there could be another significant price increase.

As the market digests this news, one thing is certain: bitcoin’s scarcity is reaching critical levels, and the implications could be significant.

“The best way to grasp bitcoin is to humbly abuse it,” according to an exclamation point. For those who have been holding onto bitcoin through thick and thin, this could well be their vindication. Whether you’re a veteran investor or just starting out in the crypto world, there is no doubt about bitcoin’s bright future.

Want to learn more about bitcoin’s supply scarcity and its implications on the market? Check out our article on “Bitcoin Supply Scarcity: The Hidden Factor Behind Its Price” on CoinSeeks.com, which provides valuable insights and information on this topic.


Kaan Akdag

Kaan Akdag

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