Tick ​​tock, imminent shock of Bitcoin’s supply

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The following is taken from a recent edition of Deep Dive, Bitcoin Magazine’s high-end market newsletter. To be among the first to receive this and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

Supply squeeze: This has been the topic of many past daily dives and will be the topic of today, as the underlying story remains exactly the same.

The demand for an absolutely scarce and inelastic monetary asset continues to increase, the supply is withdrawing from the market at a feverish pace and the price is not responding.

The market is finally starting to wake up.

The BTC daily chart looks ripe for a monster breakout, with plenty of hot air above the $ 43,000 level.

On-chain volume tells a similar story, with little resistance above the $ 43,000 level, with a massive UTXO distribution wall below. After months of accumulating in the range of $ 30,000 to $ 40,000, bitcoin is enjoying very strong support and it would most likely take a major collapse in global stock markets for bitcoin to cross the low range and fall. below $ 29,000.

As we have highlighted the shortage of supply and the dichotomy between declining derivatives markets and accumulation in the spot market, we present a fascinating chart below.

Below is the price of bitcoin, the percentage of supply in circulation not on the exchanges and the illiquid amount. The downturn in the derivatives market is like trying to fight gravity when supply is squeezed as hard as it is now.

With the way bitcoin is traded, it is quite possible to reach historic highs in a short period of time, such as in the next month or two. Bitcoin’s price action is reflexive in bull markets, as a higher price increases demand, driving prices even higher.

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