A popular cryptocurrency market analyst has recently suggested that a key Bitcoin ($BTC) metric suggests that institutional investors may have to fight over just 5% of the flagship cryptocurrency’s supply, which could send prices exponentially higher.
According to the analyst behind the widely-followed InvestAnswers YouTube channel, which has over 440,000 subscribers on the Google-owned video-sharing platform, 95% of all Bitcoin in circulation hasn’t moved over the past month. The analyst cited data from crypto analytics firm Glassnode to back his statement.
Building on this, the analyst noted that Bitcoin’s stability is setting the stage for its price to grow exponentially in the near future, with an event that triggers significant buy-side interest being needed to kick off a bull run.
While he noted the market is currently weak, only 5% of Bitcoin’s circulating supply is being moved around, and said that if “ there’s a catalyst and imagine big money wants to jump in and buy a truckload of Bitcoin? Price will just go parabolic.”
Per his words, Bitcoin is so scarce that “literally when the big institutions come, and they’re fighting over that 5% and all the legacy holders are just sitting there watching.”
Furthermore, the InvestAnswers analyst shed light on another compelling statistic: nearly eight million Bitcoins have been dormant for five years or more. This, when combined with the assumption of lost Bitcoins, indicates that out of the 21 million Bitcoin cap, only approximately 11 million are in play.
The analyst said that it’s “mind-boggling how scarce” Bitcoin is, and added that this scarcity means that “the price of what’s left will go up” and will take less to move up. It’s worth noting the price will only move up if demand outstrips supply for the cryptocurrency on the market.
Indeed, these insights highlight the unique economics underpinning the world’s most well-known cryptocurrency, drawing attention to its potential for growth and the enduring faith of its holders.
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