TL; DR
Full story
If you’ve ever thought about buying a home, you’re familiar with the term(s) “Buyer/Seller’s Market.”
(That is, if there is one excess of homes on the market, prices lower to entice buyers. But if there is one lack of homes on the market, prices are rising to meet demand).
The same goes for cryptocurrencies.
And as we all know, Bitcoin is the big daddy driving the market – and what’s good for BTC is often good for most major cryptocurrencies.
Now, with all that in mind, let this sink in:
Bitcoin stocks on Coinbase just hit their lowest level since 2015.
Think of exchanges (like Coinbase) as real estate agents: when people move their crypto to exchanges, it signals an intention to sell.
On the other hand, if they move their crypto out exchanges, it shows the intention to stick with it.
Here’s the math on why this makes us all dizzy:
BTC supply on Coinbase is drying up + Coinbase is responsible for buying BTC for most ETFs + the ETFs are buying ~$2.4 billion worth of BTC per week = potential supply crunch and price increases to meet demand.
And if you are not a Bitcoin holder, remember:
What’s good for BTC is often good for most major cryptocurrencies.
We’d love to see it!