📢 Gate Square #MBG Posting Challenge# is Live— Post for MBG Rewards!
Want a share of 1,000 MBG? Get involved now—show your insights and real participation to become an MBG promoter!
💰 20 top posts will each win 50 MBG!
How to Participate:
1️⃣ Research the MBG project
Share your in-depth views on MBG’s fundamentals, community governance, development goals, and tokenomics, etc.
2️⃣ Join and share your real experience
Take part in MBG activities (CandyDrop, Launchpool, or spot trading), and post your screenshots, earnings, or step-by-step tutorials. Content can include profits, beginner-friendl
Bitcoin Hot Supply Metric Drops 50%, Imminent BTC Price Breakout
Technical market indicators suggest a price breakout for Bitcoin (BTC), the world’s largest digital currency, is imminent. Notably, Bitcoin's "hot supply" metric has more than halved in the last three months, dropping from 5.9% to 2.8%.
Bitcoin’s potential supply squeeze and market impact
Hot supply refers to BTC that has been moved or transacted in the cryptocurrency space within the last seven days. This could refer to movements between wallets or exchanges.
An update shared by Glassnode reveals that Bitcoin’s circulating supply, which is actively traded on the crypto market, has fallen by over 50%. This suggests that coin holders are trading fewer Bitcoin units.
The implication is that traders hold onto their Bitcoin instead of selling it as the BTC price recovers. This development is significant considering the near stagnation that BTC has experienced in the last 14 days. It indicates that traders are betting on a price increase and might have decided to wait out the downturn.
Additionally, a drop in hot supply could mean market liquidity is tightening, making purchasing large amounts of BTC more difficult.
It could also signal a potential supply squeeze. Analysts say if this is the case, it might push prices higher, whether demand remains steady or increases.
Bitcoin’s Price Action and Market Sentiment
Historically, a decline in hot supply in the crypto space suggests that Bitcoin is being accumulated by stronger hands in the market. These are usually long-term holders who do not sell Bitcoin haphazardly. Therefore, selling pressure might be reduced.
Market observers consider this scenario bullish for Bitcoin. Notably, a shrinking liquid supply means fewer coins available for exchange transactions. This, in turn, could trigger a price increase due to scarcity as demand outstrips supply.
Within the last 24 hours, Bitcoin has rallied to a high of $87,443.27 from $83,440. As of this writing, the coin is trading at $85,256.80, a 2.22% increase. However, trading volume remains bullish at 59.54%, or $37.81 billion.