TL;DR
Full Story
If you’ve ever thought about buying a house, you’ll be familiar with the term(s) “Buyer’s/seller’s market.”
(I.e. if there’s an excess of homes on the market, prices lower to entice buyers. But if there’s a lack of homes on the market, prices increase to meet demand).
Same goes for crypto.
And as we all know, the big daddy that drives the market is Bitcoin — and what’s good for BTC is often good for most major cryptocurrencies.
Now, with all of that in mind, let this sink in:
Bitcoin holdings on Coinbase just reached their lowest levels since 2015.
Think of exchanges (like Coinbase) as real estate agents — if folks are moving their crypto onto exchanges, it indicates the intention to sell.
On the flip side, if they’re moving their crypto off exchanges, it shows an intent to hold.
Here’s the math on why we’re all giddy with excitement over this:
BTC supply is drying up on Coinbase + Coinbase is responsible for buying BTC for most of the ETFs + the ETFs are buying ~$2.4B of BTC per week = potential supply crunch and price run up to meet demand.
And if you’re not a Bitcoin holder, remember:
What’s good for BTC is often good for most major cryptocurrencies.
We love to see it!
