TL;DR
Full Story
For those who’ve ever thought of shopping for a home, you’ll be accustomed to the time period(s) “Purchaser’s/vendor’s market.”
(I.e. if there’s an extra of properties available on the market, costs decrease to entice consumers. But when there’s a scarcity of properties available on the market, costs enhance to satisfy demand).
Similar goes for crypto.
And as everyone knows, the massive daddy that drives the market is Bitcoin — and what’s good for BTC is commonly good for many main cryptocurrencies.
Now, with all of that in thoughts, let this sink in:
Bitcoin holdings on Coinbase simply reached their lowest ranges since 2015.
Consider exchanges (like Coinbase) as actual property brokers — if people are transferring their crypto onto exchanges, it signifies the intention to promote.
On the flip facet, in the event that they’re transferring their crypto off exchanges, it reveals an intent to carry.
Right here’s the mathematics on why we’re all giddy with pleasure over this:
BTC provide is drying up on Coinbase + Coinbase is accountable for shopping for BTC for a lot of the ETFs + the ETFs are shopping for ~$2.4B of BTC per week = potential provide crunch and worth run as much as meet demand.
And should you’re not a Bitcoin holder, keep in mind:
What’s good for BTC is commonly good for many main cryptocurrencies.
We like to see it!
