Nearly 75% of Bitcoin is in an uncirculated state, and MicroStrategy is still continuing to increase its holdings. There are really not many opportunities left for retail investors!
Today we are going to talk about Bitcoin's uncirculated supply, which is the number of Bitcoins that are not circulating in the market. This number has once again hit a new high, reaching nearly 15 million. Considering that the total supply of Bitcoin is only 21 million, there are currently about 20 million Bitcoins circulating in the market.
Uncirculated supply drops sharply
To put it simply, if the uncirculated supply of Bitcoin reaches 15 million, it means that nearly 75% of Bitcoin is in an uncirculated state, and the actual circulating Bitcoin in the market only accounts for 25% of the total. In other words, as demand continues to soar, the only thing that can change is the price of Bitcoin.
Data shows that long-term holders (addresses that have held Bitcoin for more than 155 days) have held 14.8 million Bitcoins. At the same time, the number of Bitcoins on exchanges has dropped to a four-year low of less than 3 million. This means that there are only more than 2 million Bitcoins actually circulating in the market. Therefore, when demand continues to increase, we can foresee that the price of Bitcoin may rise sharply.
However, many people do not realize this, they do not pay attention to the fact that the number of uncirculated bitcoins and the number of bitcoins circulating on exchanges are decreasing rapidly, and they do not realize the significance of these changes. Therefore, when retail investors begin to enter the market to compete for bitcoins, but there are not enough bitcoins available in the market to buy, the price may rise accordingly.
Institutions are still increasing their holdings
There is also exciting news that MicroStrategy acquired 55,000 BTC for $5.4 billion between November 18 and 24. The $1.5 billion acquisition is another move by the company after a larger investment in Bitcoin a week ago.
In the past week alone, MicroStrategy raised $1.5 billion by selling its shares and purchased another 15,400 bitcoins at an average price of $95,976 per bitcoin. It can be seen that MicroStrategy is doing its best to hoard more bitcoins at a price below $100,000.
As of December 1, MicroStrategy currently holds a total of 402,100 bitcoins, worth $38.4 billion, but its total purchase cost is $23.4 billion, with an average purchase cost of $58,263. In other words, their gains on Bitcoin have exceeded 60%.
Remember that before MicroStrategy's crazy purchase of Bitcoin, their average purchase cost was just over $30,000. However, just one month later, MicroStrategy's average cost has risen to the current more than $58,000.
This series of operations once again demonstrates that MicroStrategy continues to implement their DCA (periodic investment) strategy even when asset prices are rising.
This is in stark contrast to the bear market, when many people mocked MicroStrategy for its continued purchase of Bitcoin, believing it would likely lead to its bankruptcy. But now, MicroStrategy and its CEO Michael Saylor are regarded as legends in the investment field.
In summary, with the uncirculated supply of Bitcoin reaching a new high, coupled with the continued increase in holdings by a number of institutions such as MicroStrategy, there are fewer and fewer Bitcoins left for retail investors in the market, which also indirectly reflects the market's continued optimism about the future value of Bitcoin.
