The big price rally on the crypto market could actually have started already. At least if most analysts are to be believed. Some predicted, especially in March, when one high after another was reached, that the BTC price could already be at 100,000 USD. But things turned out quite differently. The all-time high of just under 74,000 USD could no longer be reached. Experts nevertheless expect that the big crypto rally has only been postponed and not canceled. Some data suggests this. This includes the falling Bitcoin supply on crypto exchanges.
As little Bitcoin as in 2021 on the stock exchanges
A key factor that makes BTC so attractive to investors is the fact that the total supply is limited. In the end, there will only be 21 million BTC. However, due to the halving, which takes place every four years and halves the rate at which new Bitcoins are issued, it will take over 100 years until all 21 million Bitcoins have been mined. This scarcity is now also evident on the crypto exchanges. The last time there was as little BTC on the exchanges as there is today was in 2021.
The supply on the exchanges is falling rapidly. While there were still over 1.2 million Bitcoin on the exchanges at the beginning of March, there are now only 939,000 BTC. The trend is continuing to fall. It is undisputed that the falling supply will sooner or later lead to rising prices.
ETF issuers are buying up the market
While most people will never own a whole Bitcoin, as there are far too few of them, there are also whales who hold thousands of coins. In addition to MicroStrategy, which as a company buys and holds Bitcoin on a large scale, the ETF issuers are also among the big players. BlackRock, Fidelity and Co. do not buy BTC for themselves, but on behalf of their customers who buy shares in the Bitcoin ETFs, but the sums involved are enormous. In the USA, the spot Bitcoin ETFs were only introduced in January of this year, but issuers worldwide now hold BTC worth more than 72 billion USD, with the USA alone accounting for over 60 billion USD.
In the last week alone, eleven times more BTC was bought through ETFs than was mined. Although the next $60 billion in the US will not be raised as quickly as the first 60 billion USD, experts believe that this is far from the end and that institutional investors could invest significantly more in Bitcoin in the coming months and years.
I have been active in the cryptocurrency world for over 6 years, during which I have written countless articles about this sector. What fascinates me most about cryptocurrencies is their technological aspect and the problems they aim to solve. In the past three years, I have ventured into app development and am currently working on a larger project called P2E Buzzer. Stay tuned for the surprise. 🙂 My previous experiences: Business2Community.com, TradingPlatforms.com
