In the cryptocurrency world, there is a notable trend: long-term Bitcoin holders, often referred to as 'Diamond Hands,' are holding about 80% of the circulating supply in their wallets.
How Supply Shortages Affect Bitcoin’s Price
Blockchain data shows that four-fifths of the total supply of Bitcoin is held in wallets unwilling to sell. This supply reduction creates a leverage effect on the price when new demand arises.
Institutional Holdings Create Additional Upward Pressure on Price
Companies holding Bitcoin on their balance sheets are also reducing the available supply. According to data from Bitcointreasuries, firms like Strategy, controlling 597,325 BTC, lead the list. This trend reduces supply on exchanges and sustains price in the long term.
Price Forecasts and Perspectives
Analyst CrediBULL Crypto predicts the next price movement will be larger and more powerful than previous jumps, driven by both individual accumulation and Bitcoin entering institutional treasuries. It is forecasted that the price could easily test the $150,000 threshold.
The reduction in Bitcoin's supply makes the market more resilient to selling pressure, while also setting up conditions for rapid price increases when buying demand intensifies.
