The bitcoin market is preparing for a seismic shift as the fact of its rarity is becoming more obvious than ever.
Recent data has highlighted an interesting fact: 88% of the total supply of bitcoin has not budged in at least three months.
This trend of retention shows the firm belief of long-term investors in the intrinsic value of this leading digital currency.
Glassnode data confirms that the majority of bitcoin has not been traded or sold for long periods, which enhances its rarity.
As the market adjusts to 12% of actively traded bitcoin, the scarcity principle signals an inevitable rise in value.
Economics says that when a commodity becomes more scarce, the relationship between demand and price comes under pressure. And with only a small part of the supply remaining for potential buyers, the competition for obtaining bitcoin is about to intensify.
This suggests that bitcoin has become a rare asset. And since more supply is illiquid, those looking to buy bitcoin may face stiff competition, driving up prices.
And it’s not just about who will buy bitcoin, but who can afford to buy it.
