The euphoria was again quite present on the market this week! Bitcoin (BTC) rose to a new one all-time high (ATH) and oIn the meantime, we also saw the altcoins rise sharply here and there. What struck me this week was the reaction to the inflation news and the further decreasing reserves of exchanges.
Once the news came out While inflation in the United States hasn’t been this high since 1990, bitcoin rose in a swift move to a new ATH. Bitcoin is reacting positively to the high inflation, why is that?
Bitcoin, like gold, is a scarce asset. There will never be more than 21 million BTC in circulation. However, the difference with gold is that everyone can see exactly how many bitcoins there are and which wallets they are in. When we look at gold, we have to believe the safe guards on their blue eyes that there is indeed as much gold in the safe as they say! Bitcoin is thus a fairer and more transparent way of making money.
And although after reaching the ATH . we An flush-out saws, remains the picture in the long run bullish. For example, look at the graph that on-chain data company Glassnode shared this week. Since March 2020, the month in which the coronavirus rocked the world, the number of bitcoins on the exchanges has steadily declined. Even after the major correction in the first half of this year, reserves continue to decline.
As #Bitcoin hits new All-Time-Highs, exchange balances continue to be depleted.
Exchange reserves we track account for just over 12.9% of the circulating supply and are still seeing outflows, even at ATH prices.
Read: https://t.co/unaRv5iHHq
Watch: https://t.co/5K2LuXChem pic.twitter.com/vSWjsbkPRJ
— glassnode (@glassnode) November 9, 2021
What does this say? Suppose you are a trader, then you will probably leave your bitcoins in your exchange account. This way you can access it quickly and act quickly. However, investors who keep their bitcoins in their own wallet, and therefore remove them from their exchange account, are likely to have positive expectations for the longer term. In addition, the supply available directly on the market is decreasing. If demand rises, this can then cause further price increases.
In short, I am positive about the developments within crypto. Slowly but surely, this great industry is developing into a serious player on the world stage. Are we going to see the $70,000 next week? No idea, but keep a close eye on the price updates on Crypto Insiders!
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