Illiquid Bitcoin Entities Control 74% of Markets: Examining the Halvings Impact
Wednesday, 4 September 2024, 11:17
Understanding Bitcoin's Supply Crisis
The latest data indicates that 74% of Bitcoin's circulating supply is now in the hands of illiquid entities. This situation signals a remarkable shift in bitcoin markets, as liquidity constraints tighten in response to the recent halvings.
The Role of Halvings
Each halving event traditionally impacts the bitcoin supply, reducing the rate at which new bitcoins are created. Increased holding behavior among long-term investors results in an ongoing liquidity crunch.
Market Implications
- An ongoing supply shock affecting pricing and liquidity.
- Future markets may experience increased volatility unless new strategies arise.
- Investors must evaluate the implications of restricted bitcoin availability.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.