Bitcoin is a deflationary asset with a fixed supply, unlike Ethereum, whose supply increases or decreases every year depending on network usage. There will be only 21 million BTC distributed, and a decent part, more than 4 million, cannot be earned.
Fewer and Smaller Owners Are Willing to Sell Bitcoin
Now, the latest data exhibitions that fewer and fewer people are willing to part with their BTC. According to on-chain data from Bitcoin’s long-term and short-term shareholder supply cycles, less than 10% of shareholders were eager to sell as of October 2024. This percentage is much lower than the 26% around mid-2021 and 64 % in 2013.
Interestingly, this trend shows that long-term owners, those who bought their coins in the last six months, and short-term owners, or those who bought their BTC in less than 155 days, are willing to release their coins. This position although Bitcoin, like any other crypto asset, is volatile, sending sharp price gains or rejections over time.
To put this situation in perspective, Bitcoin is down 15% from its all-time high in March 2024. However, it is also up nearly 150% year to date after rising from around $27,000 in October 2023. Prices of -Bitcoin 2022 fell sharply below $16,000 after rising to nearly $70,000 in November 2021.
The nature of the Bitcoin cycle is not, looking at hard data, to stop traders selling whenever prices are lost, for example. This trend reversal over the years shows that many owners are optimistic about the long-term potential of the coin and even as a store of value.
Playing Dealers Don’t Want To Dump, Centers Are Loading Up
There may be many factors behind this trend, but among the top is the cooperation from institutions, especially after the approval of the first Bitcoin ETFs in the United States earlier this year.
In accordance with Sauce Valuethey Bitcoin ETF issuers in the United States manage more than $57 billion of BTC. BlackRock manages more than $21.5 billion in user assets, while Grayscale, which releases its GBTC, has seen more than $20 billion in outflows since the product launched in January.
Meanwhile, Adam Buck, CEO of Blockstream, you notice that there are no options-both call and put-longer than a year. The CEO adds that this is because many options traders are not willing to sell their calls because, if they do, most of them will be bought immediately.
Featured image from Canva, chart from TradingView
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