- Only 6% of Bitcoin’s total supply remains to be mined as the US moved 10,000 BTC
- Bitcoin’s heatmap showed the compression as market risk decreased.
Recent interest from major global governments and major financial companies has given the crypto market, and especially Bitcoin, a boost [BTC].
After the April 2024 halving, Bitcoin supply decreased, leaving only 6% unmined, Bitcoin News reports. noted on X (formerly Twitter).
Source: Wicked
Analysts have predicted that less than 1% of Bitcoin will be available for mining by 2030. This realized scarcity is expected to cause the price of Bitcoin to rise as demand increases.
Additionally, the US government recently transferred 10,000 BTC ($540 million) to Coinbase, adding to the 15,999 BTC ($966.5 million) already deposited this year at an average price of $60,410.
Source: Spot On Chain
The government still owns approximately 203,600 BTC, worth $11.9 billion. This activity will likely influence the price of Bitcoin, potentially causing it to rise.
BTC long/short delta
Bitcoin recently found its first support level after a brief market dip that saw a significant sell-off of long positions, indicating a bearish trend.
Source: CryptoQuant
However, as the prolonged liquidations subsided, Bitcoin’s price began to recover and was now positioned for further gains.
Bitcoin heat map showing the compression
Bitcoin’s heatmap at the time of writing showed compression within a tight range of $58,000 to $61,000, while negative financing rates indicated increased short interest from retailers, a sign of reversal.
Source: Coinglass
The consolidation suggested a potential breakout as Bitcoin geared up for higher prices, especially as the market approaches the fourth quarter of 2024.
The average weekly ELR shows a decrease in market risk
The average weekly Estimated Leverage Ratio (ELR), which measures the ratio of open interest to foreign exchange reserves, fell by 1.5%.
Source: CryptoQuant
The drop suggested that market risk was decreasing, or traders were becoming more cautious, indicating that BTC is about to start pumping.
Read Bitcoin’s [BTC] Price forecast 2024-25
Bitcoin repeats 2016 action?
In mid-2016, Bitcoin rose before the halving events, but then fell sharply, hitting new lows and leading to predictions of a bear market.
Source: TradingView
However, Bitcoin reversed course at the end of the third quarter, leading to a strong uptrend. This pattern repeated itself at the time of writing, and Bitcoin is expected to rise again as liquidity increases in late Q3 or early Q4 of 2024.
