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Thursday, February 22, 2024

Bitcoin Exchange Dilemma: Escalating Shortage Raises Concerns

Experiencing crypto exchange delays for months has left us wondering: Where’s the missing piece in the puzzle? Well, it’s Bitcoin. But how does this impact the market?

Out of the approximately 19.5 million BTC circulating, only 2.38 million BTC are readily available for trading on exchange accounts. The majority rests in cold storage for the long term. To put it in perspective, back in March 2020, there were 3.2 million BTC, marking a notable 25 percent increase. It’s a clear signal that the supply is dwindling.

Bitcoin enthusiasts seem to be shifting towards a more professional approach, opting to secure their coins in personal wallets rather than leaving them on exchanges. This suggests a heightened awareness of security and a shift towards a more long-term investment strategy.

What’s behind this trend? One possible explanation is the maturation of Bitcoin investors. As they become more sophisticated, both individuals and institutional players are showcasing a deeper understanding of the market dynamics. They’re now willing to endure temporary non-liquidity in exchange for potential future profits.

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