Saturday, December 2, 2023

There are fewer and fewer bitcoins that can be bought on exchanges

The market is currently experiencing a shortage of bitcoin (BTC) and ether (ETH) to buy, as more and more investors are refusing to sell their holdings. This was shown in on-chain data from The Block explorer on November 20.

The supply of bitcoin and ether on exchanges in one year has decreased since touching their all-time high prices of USD 69,000 and USD 4,800 respectively two years ago. This shows that the interest of the holders to hold the assets for a longer time and not sell at the current prices is growing.

Last year, 27.7% of the supply of bitcoin and 39.04% of ether was active. These numbers are the lowest in their history, according to the data recorded since 2017 which can be seen in the graph below.

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This chart shows the percentage of bitcoin supply that is active in a year. Source: The Block.

In turn, the percentage of bitcoin touched in three and five years is also at its all-time low. They exactly represent 58.57% and 70.12%, as can be verified in the following graph.

There Are Fewer And Fewer Bitcoins That Can Be Bought On Exchanges
The red line shows the percentage of active bitcoin in three years and the blue line in five years. Source: The Block.

Bitcoin and ether are recovering

This shortage scenario occurs while bitcoin was traded around USD 37,000 ten days ago in the area of ​​its maximum that will not be seen in 18 months. And ether is hovering around USD 2,000, its highest price in 7 months, according to data from TradingView explorer.

The fact that more and more hodlers are determined not to sell at current prices helps prevent prices from falling. Therefore, as long as this behavior continues, currencies may continue their upward trend when demand increases.

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There Are Fewer And Fewer Bitcoins That Can Be Bought On ExchangesThere Are Fewer And Fewer Bitcoins That Can Be Bought On Exchanges
BTC remains trading around USD 37,000. Source: TradingView.

The recent price recovery comes amid growing enthusiasm for the possible approval of bitcoin and ether spot exchange-traded funds (ETFs) in the United States, as well as the approach of halving, the event that halves the Issuance of BTC is getting worse. the lack of purchase.

Nation World News Desk
Nation World News Desk
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