news 
U.S. stockpiling Bitcoin – What happens to BTC’s supply now?
The recent news of the United States stockpiling Bitcoin has sent shockwaves through the cryptocurrency market, and investors are left wondering what this means for the supply of Bitcoin in the long term.
Bitcoin’s exchange reserves have been shrinking steadily over the past year, a trend that aligns with the steady price appreciation. As a result, the supply is becoming increasingly tight. The U.S.’s decision to stockpile Bitcoin could further exacerbate this situation, potentially creating an imbalance that propels the price upwards.
As of today, 75.24% of all Bitcoin holders are in profit due to their initial investment, with 21.25% at a loss and only 3.51% currently break-even. This stark contrast highlights the persistent sentiment of confidence among long-term investors, which could further fuel the accumulation trend observed on exchanges.
Meanwhile, activity on exchanges has seen some decline in terms of active addresses (-6.70%) and zero-balance addresses (-10.40%). However, new addresses have increased by 2.14%, indicating that fresh entrants are still willing to invest in the cryptocurrency. Large transactions exceeding $10M have also surged by a whopping 36%, suggesting institutional investors remain committed to their positions.
On the liquidation front, we’ve seen a stark imbalance with $43.96M in short liquidations compared to $116.933M in long liquidations. This is largely attributed to over-leveraged bulls getting caught off guard by the recent correction and subsequently forced to sell their holdings.
In conclusion, as exchange reserves continue to deplete and institutional demand rises, it’s reasonable to assume that Bitcoin’s supply will soon become even tighter than it already is. With technical indicators suggesting the asset is on the cusp of a decisive breakout, the conditions are ripe for a significant price surge in the near future.
To summarize:
Source: https://ambcrypto.com/bitcoin-reserves-drop-will-scarcity-fuel-the-next-surge/
