Supply Shock: Lost Or Held Bitcoin Are Now Outpacing New Circulating Coins

Supply Shock: Lost Or Held Bitcoin Are Now Outpacing New Circulating Coins

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One specific metric could be particularly crucial to the increase in value recently, and it could be causing demand to far outweigh any BTC supply available to buyers.
Bitcoin is once again trading above ,500 after a retest of ,000 was quickly bought up. A variety of factors are beginning to have an influence over supply and demand, and appear to be tipping the scales in favor of price appreciation.

Bitcoin Held Or Lost Coin Metrics Outpace New Circulating Coins

Compared to where Bitcoin was during the last market cycle, the crypto asset is less than a month away from retesting its former all-time high. Or it should be if following the same halving-based trajectory.
That design element helps to give Bitcoin a scarcity and rarity that makes it similar to gold, yet due to its all-digital code, more can never be produced once the entire 21 million BTC supply is mined.
RELATED READING | THIS UNUSUAL BITCOIN ADOPTION METRIC SETS NEW ATH
Until that happens, new coins are released at a rate or 6.25 BTC roughly every ten minutes per block generation. The current post-halving BTC inflation rate is around 900 BTC per day. But again, there’s only a small sample size to go off of, so the leading cryptocurrency by market cap is at a ‘prove it or lose it’ moment when it comes to the stock-to-flow model and other halving-based four-year cycle theories.
BTC Lost or Hodled Coins | Source: glassnode.com

Less Bitcoin sold at market rates, keeps prices growing due to supply and demand. And according to new glassnode data, the amount of BTC “lost” or “hodled” is meanwhile increasing by the day. The current data points to a BTC being held or lost at a rate of 1375 per day, resulting in outpacing the creation of new circulating coins by 385 BTC per day.
Satoshi Nakamoto designed Bitcoin to be the first peer-to-peer electronic form of cash, but in ten years its become so much more. He also sought to give Bitcoin a sort of collectability, and instill within it the attributes of a rare commodity.
Halving-Based Market Cycle Theory Prove It Or Lose It Point | Source: BTCUSD on TradingView.com

Featured image from Deposit Photos, Charts from TradingView & glassnode

RELATED READING | DATA SHOWS STAGGERING AMOUNT OF BITCOIN SUPPLY HASN’T MOVED IN SEVERAL YEARS
bitcoin btcusd supply halving
The data could very well indicate the start of a bull run brewing due to the offset of supply and demand alone. Not taking into account economic factors, the increase in money supply due to stimulus, and more, could be further fuel for the next rise.

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