Bitcoin's price is rising almost vertically, and the main reason behind this price surge is a familiar yet increasingly powerful phenomenon: supply shock.
According to Willy Woo, a leading online analyst, data indicates that Bitcoin is gradually leaving exchanges and falling into the hands of long-term investors. Let's analyze further to understand what is happening and predict what might happen next.
Bitcoin Supply is Disappearing from Exchanges
1️⃣ Bitcoin on exchanges is sharply declining: Bitcoin is being withdrawn from exchanges at a high rate, moving into cold wallets for long-term holding.
2️⃣ Supply Flow:
Bitcoin is gradually shifting from short-term traders to long-term investors.
Names like MicroStrategy and Bitcoin ETF funds continue to absorb a large amount of BTC, pushing circulating supply down to record lows.
Near Future: Demand Increases, Supply Decreases = Price Increases
Bitcoin is a fixed supply asset: No matter how high the price rises, you cannot 'print' more Bitcoin. This creates a unique phenomenon:
MicroStrategy leads the buying frenzy: The company continues to accumulate BTC at an unrelenting pace.
Bitcoin ETFs are attracting strong capital: ETF funds are continuously buying more, putting significant pressure on market supply.
Long-term investors are holding tight: Long-term Bitcoin holders (LTH) are 'locking up' BTC in wallets, significantly reducing the amount of Bitcoin available for trading.
👉 Consequences: This supply shock will become even more powerful as demand continues to increase while the supply in the market is choked.
Scarcity: The New Era of Bitcoin is Beginning
All factors are converging to bring Bitcoin into an unprecedented scarcity cycle:
1️⃣ Record Supply Decrease: On-chain data shows that the amount of Bitcoin in circulation in the market is increasingly diminishing.
2️⃣ Explosive Institutional Demand: Large institutions like MicroStrategy and ETF funds are continuously accumulating Bitcoin, depleting the market.
3️⃣ Value Growth Momentum: Each supply reduction combined with increasing demand leads to new historical price milestones.
Conclusion: Are You Ready?
Bitcoin is not just an investment asset – it is a symbol of scarcity. The supply shock is painting a future where BTC becomes increasingly difficult to own, driving its value to unprecedented heights.
👉 Action:
If you are holding BTC, be patient – scarcity will do the rest.
If you haven't owned BTC yet, now is the time to consider before the opportunity disappears.
Be ready – the journey of breaking Bitcoin's limits has just begun. 🚀
