Bitcoin's price continues to hit new records, crossing the $120,000 mark. However, data indicates that the supply situation is becoming increasingly complex.
Price Dynamics and Growth Results
Bitcoin's (BTC) price has increased by 105% in the past year, making it the leader among altcoins. The total cryptocurrency market cap approaches nearly $3.7 trillion, with a daily trading volume of around $163 billion. Bitcoin's market dominance is over 64%, and the fear and greed index shows a sentiment of greed among traders.
Supply Issues and Accumulation
According to Glassnode data, wallets holding less than 100 BTC are accumulating Bitcoin at a rate of 19,300 BTC per month, which exceeds the amount mined by miners (13,400 BTC).
This indicates that retail and high-net-worth holders are absorbing more than 100% of the new supply. If some Bitcoin remains on the market, institutional investors or treasuries are taking up the rest. Bitcoin balance on exchanges is also declining, indicating a real supply shock.
Institutional Adoption of Bitcoin
Bitcoin is not just gaining in price, but also in legitimacy. Institutional investors are leaning in, and companies are investing in BTC. For instance, Michael Saylor's company MSTR owns nearly 600,000 BTC, with a paper profit of $28 billion.
Other companies, such as Japan's Metaplanet, hold over 15,500 BTC, among several others who are also beginning to add BTC to their balances.
The Bitcoin market continues to rise; however, the observed imbalance between supply and demand raises questions about its sustainability. Institutional investments and accumulation encourage many companies to keep a close eye on this cryptocurrency.
