Blockchain analytics firm Santiment reported a significant shift in Bitcoin’s supply dynamics. BTC’s supply on exchanges has been steadily moving into self-custody, reflecting a growing trend among investors to hold their assets securely away from exchange platforms. This trend comes as exchange reputations face increasing scrutiny and diminishing trust among the crypto community.
Concurrently, data from Santiment reveals that the 10 largest Tether exchange wallets collectively hold a staggering $15.23 billion. This accumulation of Tether suggests a surge in exchange buying power, reaching its highest level in 17 months.
Understanding Bitcoin’s Supply Dynamics
Adding to the discourse, crypto expert Rajat Soni took to the X platform to share insights into BTC’s supply history and potential future trajectory. Soni pointed out that a significant portion of its supply was issued during its early years when its value was substantially lower. As more people express interest in acquiring BTC, the available supply decreases, creating a scarcity that historically has driven the cryptocurrency’s value upward.
Soni emphasized the long-term nature of BTC’s supply dynamics, noting that over the next 120 years, only 1.5 million more coins will enter the economy. This gradual and predictable issuance is a fundamental aspect of Bitcoin’s design, ensuring there will never be more than 21 million BTC in existence.
Highlighting the mistakes of both early holders who may have sold prematurely and current investors who may be overlooking BTC’s potential, Soni argued that a modest amount of research would lead to the conclusion that its price is poised for continuous growth in terms of any fiat currency.
Soni supported his argument with historical data, showcasing the correlation between Bitcoin’s supply issuance and its price at each halving event. From the first halving in 2012, when 50% of the supply was issued, with a price of $12, to the third halving in 2020, where 12.5% of the supply was issued, with a price of $8,590, the trend has consistently pointed towards increasing value.
Looking ahead to the fourth halving expected in 2024, Soni invited speculation on what Bitcoin’s price might be, underlining that the inflation rate of Bitcoin will be less than 2% in April 2024 and will continue to decrease until it reaches zero. He argued that individuals are actively accumulating Bitcoin, and once these coins are stashed away, they will never re-enter the economy.
In the end, Soni boldly predicted that the price of Bitcoin could reach unprecedented levels, envisioning a future where Bitcoin surpasses $100,000, $1,000,000, $10,000,000, and even $100,000,000. While such predictions are speculative, they contribute to the ongoing dialogue surrounding Bitcoin’s potential as a long-term store of value.
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