The mid-May crash, which happened recently, did blow every ounce of trust and confidence from the investor’s hearts regarding Bitcoin or cryptocurrency, for that matter. But now, once things are back to normal and Bitcoin, along with other altcoins, is making a run for the price within the market, that trust factor is back again and booming. More and more investors are swooping off any Bitcoin that they can get their hands on from the exchanges and confining it to their digital wallets for the right time to come.
Bullish Sign for Bitcoin’s Price Value
Due to this very action, the Bitcoin balance on various exchanges is dwindling, and the supply is going down; if we talk about Coinbase alone, then its Bitcoin supply is as low as December 2017. This might point towards an upcoming bullish run accompanying not only Bitcoin but other altcoins as well. On the other hand, when the supply is high, then it just means that there are more and more tokens available for trading; it also represents that liquidity has become the new norm, and the market should brace itself for another volatile adventure up-close. Coinbase was flourishing with all that Bitcoin being liquidated by the investors during the mid-May crash and its balance certainly rose, but when the market took some upheave, the exchange was once again out of Bitcoin.
As mentioned earlier, this could be taken as a positive sign for Bitcoin price as it means that it will eventually rise. This gives those investors and traders some more incentive to be seeking any and all Bitcoin tokens they can get their hands on and subject them to withholding. Coinbase is not the only exchange that is running dry with Bitcoin supply as there are many others that can relate to it at the moment. This is a closed cut cycle, and it will eventually repeat itself, but for the time being, investors and traders should be looking for any price depreciation for Bitcoin in the upcoming days or another market jolt that will temp the withholders and whales to liquidate their Bitcoin stash.
