Euphoria was back on the market this week! Bitcoin (BTC) rose to a new one All-time High (ATH) and sIn the meantime, we’ve also seen altcoins rise sharply here and there. What surprised me this week was the reaction to the news of inflation and the further decline in stock exchange reserves.
As soon as the news comes out While US inflation hasn’t been this high since 1990, bitcoin has soared in rapid movement to a new ATH. Bitcoin reacts positively to high inflation, why is that?
Bitcoin, like gold, is a rare asset. There will be no more than 21 million bitcoins in circulation. However, the difference with gold is that everyone can see exactly how many bitcoins there are and which wallets they are in. When we look at the gold, we have to believe the blue eyes of the safe guards that there is indeed a lot of gold in the safe as they say! Thus Bitcoin is a fairer and more transparent way to make money.
Although, after accessing ATH that eviction saws The image remains in the long term rising. For example, look at the graph that on the chain The data company Glassnode shared it this week. Since March 2020, the month when the coronavirus shook the world, the number of bitcoins on exchanges has been steadily declining. Even after the major correction in the first half of this year, reserves continued to decline.
as # bitcoin It reaches all-time highs, and exchange balances continue to be depleted.
The exchange reserves we track represent just over 12.9% of circulating supply and we are still seeing outflows, even at ATH rates.
is reading: https://t.co/unaRv5iHHq
– glassnode (glassnode) November 9, 2021
What does this say? Let’s say you are a merchant, you will probably leave your bitcoins in your exchange account. This way you can reach them quickly and act quickly. However, investors who keep their bitcoin in their own wallet, and therefore remove it from their exchange account, are likely to have a positive long-term outlook. In addition, the supply available directly in the market is decreasing. If demand rises, this can lead to further price increases.
In short, I am optimistic about developments within cryptocurrencies. Slowly but surely, this great industry is developing into a serious player on the world stage. Will we see $70,000 next week? No idea, but keep a close eye on price updates on Crypto Insiders!
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