Bitcoin supply dynamics is on the investor’s radar and they are happy with it.

The crypto investors are occupied with conversations around topics like Bitcoin, Ethereum, blockchain, initial coin offerings, and other related topics. The Bitcoin-generated crypto buzz has caused quite an uproar in the media circles, online forums, and even at the dinner-time conversations. Bitcoin is the dominating crypto which elevated the crypto market to new heights and eventually became the digital gold in the crypto world. However, as it kept investors speculating about its availability, everyone is confused about its future state. But according to recent reports, Bitcoin supply dynamics are doing better by remaining stable over a year, and are just 1% away from the all-time high.

Investors are closely watching the Bitcoin supply dynamics over the last few months since it is the prime driver of the crypto market and a little price fluctuation can disrupt the market. The market was affected earlier also, because of Bitcoin’s dormant supply at similar levels. But experts like to paint a picture of the situation of the supply-side being under control. As the dynamics of crypto have improved tremendously, an illiquid supply of Bitcoins can be predicted. The illiquid supply has already surpassed 2021’s highest of 76.02% and has reached 76.25%.


Supply Shock Dynamics of Bitcoin

Another method to analyze this dynamic is through the Supply Shock Ratio, which continues to show the strength of illiquid supply growth relative to the rest of the supply. Generally, supply shock is not something that crypto investors would like, but for major cryptocurrencies like Bitcoin and Ethereum, investors can consider this supply shock phenomenon as a good thing! What is a Supply Shock Ratio?

A supply shock is an unexpected spike in the demand for an asset or a commodity that exponentially exceeds the available supply.


A Positive Rise

The total number of Bitcoin tokens held by investors who possessed it for more than a year has crossed 1.7 million BTC. According to reports, this marks a new high. Crypto holders, especially BTC fanatics, have increased their holdings by nearly 20% since December 2021. And several others continue their moderate accumulation and/or short-term holder supply into long-term holder supply. Regardless, it indicates a positive sign to see long-term holder supply in an existing neutral to the rising macroeconomic environment.



Currently, the most discussed topic among Bitcoin investors is what will be the repercussions in the future if all the 21 million Bitcoins are already mined and circulated among crypto investors? It’s quite unclear right now as to where crypto will head in the future, but these long-term investment sentiments indicate a bullish future for Bitcoin.