With Halving 2024 fast approaching, a recent report from Glassnode reveals an alarming crunch in the available supply of Bitcoin. This analysis takes an in-depth look at the key indicators predicting a surge in investor demand in the months leading up to this critical event.
Bitcoin Supply Hits All-Time Lows
Glassnode’s examination of Bitcoin supply dynamics ahead of the Fourth Halving reveals historic lows in the available supply of BTC.
According to report, short-term holders now only hold 23.8% of the total supply, reaching a level never seen before. Additionally, only 5-10% of bitcoins are actively traded, with the rest accumulated by long-term investors.
This situation of relative shortage contrasts sharply with previous cycles. It results from a paradigm shift: holders store their bitcoins far from stock exchanges, anticipating new highs.
The Glassnode report examines this phenomenon in detail in three stages. It first analyzes the “active and available” supply, then the “savings and storage” rates, and finally the impact of capital flows on valuation.
This overall approach reveals massive downward pressure on short-term supply, in favor of long-term accumulation.
An explosive cocktail before Halving 2024
This scarcity of available supply comes at a critical moment, on the threshold of the Halving scheduled for April 2024. This event, which occurs every 210,000 blocks, reduces the rate of issuance of new bitcoins by 50%.
Combined with the issuance halving, the drying up of supply could trigger a major bullish surge. After the previous halvings, the BTC price had experienced spectacular rallies. The Glassnode report also identifies striking similarities between current conditions and the troughs of past bear markets.
For savvy investors, the message is clear: this scarcity of supply in the face of growing demand could propel the price of BTC to new heights. The current tightening of supply seems to herald an explosive upward cycle after Halving 2024. The winning strategy? A patient build-up in anticipation of the coming storm.
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