A widely followed crypto strategist says one Bitcoin (BTC) signal is flashing bullish for the first time in the crypto king’s history.
The anonymous host of InvestAnswers tells are 444,000 YouTube subscribers that the available supply of Bitcoin for trading is shrinking for the first time ahead of a halving.
The available supply is a percentage of the circulating supply that is not owned by HODLers, or investors with little history of selling the best digital asset.
Bitcoin’s next halving event, estimated to take place in April next year, will reduce the amount of new BTC issued to miners from 6.25 Bitcoin per block to 3.125 Bitcoin per block.
“The point of this graph right here, as you can see [is] the available hodler supply as a percentage of the total supply and marked with black dots are the actual cycles. This is the first time ever in a halving cycle where supply drops before we’re even in it, ladies and gentlemen. And that is very exciting.”
According to the trader, the declining supply could be a catalyst for a huge bull run.
“This decrease in supply is likely to lead to a huge bull run in the future. I don’t know if it’s this bull run we’re in right now or the next one, but it’s coming. Which I’m sure.
This is because every day there is more demand for Bitcoin and the supply is drying up. And that means the price will go up. That means the rate of hardness is increasing.”
He also says further institutional adoption, including BackRock’s filing for a spot Bitcoin ETF, will increase demand for the asset and further shrink supply.
“And the institutions are here: BlackRock, Fidelity, Deutsche Bank, Crédit Agricole, Citadel, you name it. They’re all coming and probably hundreds more. And even these few names have an AUM (assets under management) of $27 trillion.
And Bitcoin’s market cap is half a trillion (dollars). It is ridiculous. And only a small portion of that half trillion (dollar) market cap is for sale. So you can count. It’s the most beautiful macroeconomic experiment I’ve ever seen in my life. And I just get excited every day looking at the data.
Bitcoin is trading at $30,184 at the time of writing, down 1% over the past 24 hours.
i
Don’t Miss Out – Subscribe to receive email alerts delivered straight to your inbox
Check price action
follow us on Twitter, Facebook And Telegram
Surf the Daily Hodl mix
Image generated: Midway through the journey
