Bitcoin's Supply Crunch: 'Shock' Looms As Exchange Balances Hit Record Lows — Is This The Next Bull Run?
Portfolio Pulse from Ananya Gairola
Bitcoin's exchange balances have hit a five-year low, indicating a potential supply shortage in the cryptocurrency market. The available Bitcoin on exchanges has decreased by 2.3 million since April 2018. Matt Weller, the global head of research at Forex.com, suggests that this could lead to a supply shock, driving prices higher at a rapid rate. The potential influence of spot ETFs could also alter Bitcoin's supply and demand dynamics.
October 28, 2023 | 8:55 am
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Bitcoin's exchange balances have hit a five-year low, indicating a potential supply shortage. This could lead to a supply shock, driving prices higher. The potential influence of spot ETFs could also alter Bitcoin's supply and demand dynamics.
The decrease in available Bitcoin on exchanges indicates a potential supply shortage. This, coupled with a small increase in demand, could lead to a rapid increase in Bitcoin's price. The introduction of spot ETFs could also make Bitcoin more accessible to a broader range of investors, further increasing demand.
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