Rafael Schultze-Kraft, chief technology officer of on-chain analytics platform Glassnode, says investors are underestimating the demand for bitcoin’s limited supply.

In a series of tweets published December 21, Schultze-Kraft said bitcoin is in a supply and liquidity crisis, creating an “extremely bullish” and “highly underrated” marketplace for the crypto-asset. 

He predicted the limited supply would lead to a significant increase in bitcoin’s price in the coming months. 

The CTO continued, explaining that 2.7 million BTC is held in accumulation addresses, with “True HODLers” hoarding roughly 14.5 percent of the circulating supply. Schultze-Kraft defined these addresses as wallets that have only ever received bitcoin and never spent the funds. 

The Glassnode chief also estimated an additional 3 million BTC could be attributed to lost coins, further reducing the circulating supply by 16 percent. 

Schultze-Kraft pointed to the rise of institutional demand for bitcoin, highlighting Grayscale’s acquisition of 573 million BTC and Microstrategy purchasing more than $475 million in bitcoin.

He said there were likely “many more” institutions acquiring bitcoin or looking to invest in the near future, driving demand even higher.

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