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Bitcoin: will its price match the increase in volumes traded on the stock exchange?

Bitcoin’s growth story this season is fueled by a low supply of Bitcoin on the exchanges and stablecoins. Historically, these two factors have been a recipe for a price rally.

Bitcoin domination

Bitcoin’s dominance had increased from 60% to 61.4%. When it comes to altcoins in the market, the double-digit growth of Polkadot, Cardano, XRP, etc. is the norm. Almost all of the major metrics point to a prolonged rise in Bitcoin prices.

BTC Exchange Traded Volume Reaches $ 15.38 Billion, What's NextBTC Exchange Traded Volume Reaches $ 15.38 Billion, What's Next

Source: Sentiment

Institutions and crypto-trusts block huge volumes of Bitcoin and Ethereum. As of February 16, 2021, the grayscale Bitcoin trust had effectively removed 650,000 Bitcoins from the circulating supply.

BTC Exchange Traded Volume Reaches $ 15.38 Billion, What's NextBTC Exchange Traded Volume Reaches $ 15.38 Billion, What's Next

Source: Coinmetrics

Based on data from CoinMetrics, Bitcoin’s floating supply is just over 14 million. Among the major institutions with Bitcoin trusts, Grayscale owns more than $ 31 billion in Bitcoin. Additionally, much of Bitcoin’s supply is held dormant for the long term.

Less than 45% of the total supply of Bitcoin has been transferred to the network since 2020. The price is reaching new highs of $ 50,000 on major exchanges. Over 55% of Bitcoin remains dormant. The percentage of active 5Y – 7Y offer has increased significantly in recent weeks. The number still remains low at 45 percent.

It should also be noted that the active offer for less than 1Y – 2Y drops in the last three weeks.

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