CryptoQuant has unveiled the fact that the current holdings of Bitcoin miners are at their lowest in over 14 years. It can be considered an accomplishment for the cryptocurrency industry. The most significant aspect pulled from CryptoQuant data concerns miner reserve which halved from the peak and have not been seen since over 5,000 days. It means that there will be less miner selling pressure when we will go into the main bull cycle.
Miner Supply of $BTC at its Lowest in 14 Years“Miner holdings of #Bitcoin are in decline, down 50% from highs. It was over 5,000 days, or 14 years since miner reserve of Bitcoin was this low.” – By @thectpapiRead more 👇https://t.co/FdbPNcl7yb
— CryptoQuant.com (@cryptoquant_com) June 4, 2024
Rising Bitcoin Demand and Falling Inflation Rate Point to Future Supply Shortage
To make it clearer, 14 years ago in 2010, Bitcoin was a novelty and not widely spread. Satoshi Nakamoto, the unknown founder of *BTC*, was still involved in the Bitcoin project. At that time, altcoins were not yet a thing since Bitcoin was the only digital currency then in circulation. Barack Obama was the US President and before notable investors such as Michael Saylor, the CEO of MicroStrategy, another decade would pass before investing in Bitcoin.
It has happened at the time when the need in BTC is growing, and the inflation rate is decreasing. This is causing analysts to forecast sharply lower supply levels in the coming years. The fundamental principle of Bitcoin’s limited supply means that as demand rises. The fewer new coins are mined, as a result, the available supply will become scarcer.
Investors Poised to Reap Benefits from Bitcoin’s Scarcity Shift
There are likely to be only a few large winners in this situation, primarily companies and investors who look at it from a long-term, supply-chain perspective. Those who are planning to invest now, can potentially benefit a lot from this because the market will likely undergo a change due to the scarcity of new bitcoins.
It is in this context that the slogan “slowly, then all at once” appears to be particularly relevant. Although the current reduction of the miner’s reserves may be sluggish. However, the results can be sharp and severe for the price of Bitcoins as well as the overall market.