In total, there are around 19.5 million BTC in circulation. However, this quantity is not available to the market for trading. There are currently only 2.38 million BTC as liquid amounts in exchange accounts. The rest is stored long-term in cold storage.
For comparison: In March 2020 there were 3.2 million BTC, a good 25 percent more. A sign that supply is becoming scarce.
Bitcoin investors: Long-term thinking instead of short-term profits
A possible explanation for this trend is the increasing professionalization of Bitcoin investors. Many of them now prefer to no longer hold their coins on exchanges, but rather keep them in their own, more secure wallets. This indicates increased security awareness and a more long-term orientation in their investment strategy.
This development could be an indicator of the maturation of the Bitcoin market. Investors, both individuals and institutional players, are showing an increasingly sophisticated understanding of the market and its dynamics. You are willing to accept temporary non-liquidity for the potential future profits.
You can find out what you should know about BTC in your portfolio and what the cryptocurrency is like in general in the new BTC-ECHO Bitcoin Report.
This might also interest you