Miners can't keep up with demand: The Bitcoin supply squeeze is getting real
The post Miners can't keep up with demand: The Bitcoin supply squeeze is getting real appeared on BitcoinEthereumNews.com. While Bitcoin (BTC) rips through fresh all-time highs, climbing above $118K and $120K within reach, the metrics of the rally are getting far more complex than just bullish sentiment. On-chain data shows an emerging imbalance in supply and demand reminiscent of late 2020. BTC price is now up by 105% over the last year and leading the altcoins with massive bullish sentiments. The cumulative crypto market cap is nearing the $3.7 trillion mark with a 24-hour trading volume of around $163 billion. At the same time, Bitcoin dominance is on the high side of 64%, and the fear and greed index is flashing “Greed” among traders. Miners can’t keep up with demand As per the Glassnode data, wallets holding less than 100 BTC are now accumulating Bitcoin at a combined pace of 19,300 BTC per month. This number is already 6,000 more BTC than miners are issuing monthly (13,400 BTC). It added that this wide base of retail and high-net-worth holders is absorbing more than 100% of the net new supply. If some Bitcoin remains in the market, then ETFs, institutions, or treasuries are gobbling up the rest. Bitcoin balance on exchanges is also dropping, and the supply shock is getting real. Exchange balances are falling, long-term holders are growing, and miner issuance is unable to keep up. Long-term holders (LTHs) are absorbing more BTC than miners can mint, and they’re not even thinking about selling. Source: Coinglass The Net Unrealized Profit/Loss (NUPL) for long-term holders is currently sitting at 0.69, which is below the threshold red zone of 0.75. In the last cycle, the market spent 228 days in the euphoria zone, and this cycle, just 30 days. Even short-term holders, the classic profit-takers, are yet to show any signs of dumping. Their average entry price is around $100,000,…
The post Miners can't keep up with demand: The Bitcoin supply squeeze is getting real appeared on BitcoinEthereumNews.com.
While Bitcoin (BTC) rips through fresh all-time highs, climbing above $118K and $120K within reach, the metrics of the rally are getting far more complex than just bullish sentiment. On-chain data shows an emerging imbalance in supply and demand reminiscent of late 2020. BTC price is now up by 105% over the last year and leading the altcoins with massive bullish sentiments. The cumulative crypto market cap is nearing the $3.7 trillion mark with a 24-hour trading volume of around $163 billion. At the same time, Bitcoin dominance is on the high side of 64%, and the fear and greed index is flashing “Greed” among traders. Miners can’t keep up with demand As per the Glassnode data, wallets holding less than 100 BTC are now accumulating Bitcoin at a combined pace of 19,300 BTC per month. This number is already 6,000 more BTC than miners are issuing monthly (13,400 BTC). It added that this wide base of retail and high-net-worth holders is absorbing more than 100% of the net new supply. If some Bitcoin remains in the market, then ETFs, institutions, or treasuries are gobbling up the rest. Bitcoin balance on exchanges is also dropping, and the supply shock is getting real. Exchange balances are falling, long-term holders are growing, and miner issuance is unable to keep up. Long-term holders (LTHs) are absorbing more BTC than miners can mint, and they’re not even thinking about selling. Source: Coinglass The Net Unrealized Profit/Loss (NUPL) for long-term holders is currently sitting at 0.69, which is below the threshold red zone of 0.75. In the last cycle, the market spent 228 days in the euphoria zone, and this cycle, just 30 days. Even short-term holders, the classic profit-takers, are yet to show any signs of dumping. Their average entry price is around $100,000,…
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