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NewsBTC 2021-09-16 17:00:55

How Shrinking Short-Term Supply Of Bitcoin Is Affecting The Asset’s Price

This year has been marked by numerous lows for bitcoin. The digital asset has seen yearly lows in the exchange reserves, transaction fees, and now, the short-term supply of bitcoin is down. The short-term supply has been shrinking for the past year. With declining volumes showing trends that have not been seen in the past five years. Given the low volume of bitcoin transactions, which has led to low transaction fees, only few bitcoins are moving around the network. One And Three-Month Lows Show Shrinkage Bitcoin is no longer being spent as it was in the past. One of the leading ideas behind the creation of the digital asset was so it could double as a currency, one which was not controlled by any one person or entity. Early adopters stuck to this initial vision. Using BTC for purchases where they can. Metrics show that in the past month, 6.8% of the asset’s total supply has been spent. While the three-month trend shows that only 15.8% of the total supply has been spent by investors. Related Reading | Bitcoin Suffers As Mid Caps Cryptos Establish Market Dominance With Wide Margin The three-month lows show the short-term supply of bitcoin is shrinking to 2015 lows. In the month of August, short-term supply hit a low of 6.75%. With a slight increase that only happened after the asset had recovered back towards the $50,000 mark. But this did not last long. The supply per month is in a declining trend, indicating that subseque...

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