On the 19th of November, a report by blockchain analysis company Chainanalysis revealed that there are only 3.4 million BTC left in circulation. The report highlighted the reason behind the steady BTC rise. Chainanalysis said the demand for Bitcoin is high at a time when availability is limited. The report added that the amount of available BTC is dependent on holders’ decision to sell or trade their digital assets.
With the constant and significant rise in Bitcoin’s price, BTC has jumped more than double since its last halving. Specifically, BTC has added about 110% in value since the last halving on the 11th of May. On the day of BTC’s halving, the digital asset traded at $8,566, up from around $3,000 in March.
At press time BTC is up 3.61%, gearing towards $20,000 at $18,783.65.
Chainanalysis identified two types of wallet- Liquid and Illiquid. Liquid wallets send more than 25% of the total received Bitcoin. Illiquid wallets send less than 25% of their total Bitcoin holdings. In a chart, the report revealed that Bitcoin supply has plunged, with more investors trading less than 25% of their Bitcoin holdings. Hence, the small amount of Bitcoin in circulation.
The blockchain analysis company added that institutional investors are the cause of the low BTC supply. Chainalysis said these investors have been hoarding Bitcoin.
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