In 2021, during the peak of the bull market, approximately 2.7 million Bitcoin were held in exchange reserves, with Bitcoin trading around $69,000.

Three years later, the reserves have decreased to about 2 million Bitcoin, yet the trading prices are nearing historical highs. The recent halving event has effectively cut the potential new supply from miners by half, significantly reducing the likelihood of new Bitcoin entering the market through sales. Given these dynamics, it becomes challenging to maintain a bearish stance on Bitcoin.

Moreover, there is an observable depreciation in the value of the U.S. dollar. Anticipations are building around a potential shift in the Federal Reserve’s monetary policy, possibly reversing the direction of its quantitative easing measures and considering a rate cut, as inferred from market behaviors. The U.S. economy appears to have adapted to enduring high inflation rates.

Personally, I avoid holding U.S. dollars; at most, I convert USD to stablecoins like USDT or USDC to purchase Bitcoin.

The critical factor to focus on is supply and demand. With the current market conditions, it is increasingly difficult for individuals to accumulate even a single whole Bitcoin, which should be considered a primary investment goal.

By distancing oneself and observing market trends, time will likely reveal the strategic merits of maintaining Bitcoin holdings. HODL!!!

Written by Kirill Evans