Good morning Bitcoin: Will your Bitcoin soon be worth gold? Supply shortage looms!

Good morning Bitcoin: Will your Bitcoin soon be worth gold? Supply shortage looms!
Good morning Bitcoin: Will your Bitcoin soon be worth gold? Supply shortage looms!
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Good morning! We have listed the latest news for you. Start the day with a bitcoin breakfast.

At a time when the price of Ethereum is experiencing a temporary dip, a striking trend is emerging that points to possible long-term consequences for the value of the coin. Analysts and investors are paying close attention to the increase in whale transactions on the Ethereum blockchain, especially at large wallets that hold Ethereum. This is seen as a possible indication of the future price direction of the cryptocurrency.

The increase in whale activity is seen by some analysts as a positive sign for Ethereum’s long-term price trends. Crypto analyst https://twitter.com/ali_charts/status/1773743655540449552 that despite Ethereum’s recent price correction, the increase in Ethereum whale transactions is a good sign for future price movements. Historically, whale activity has been associated with significant price movements, with large trades often indicating institutional interest or accumulation.

Warren Buffett, known for his criticism of bitcoin and other cryptocurrencies, sees his investment firm Berkshire Hathaway profiting from the asset class he has often criticized. Despite its reservations, Berkshire Hathaway has made a significant investment in Nu Holdings, a Brazilian fintech company that launched a cryptocurrency trading platform called Nucripto in 2022. Could these surges change Warren Buffett’s views on crypto?

Buffett’s distaste for bitcoin is well documented. In a 2018 interview, he said that cryptocurrencies essentially produce nothing and that their value depends solely on someone else’s willingness to pay a higher price.

“If you told me you own all the bitcoin in the world and you offered it to me for $25, I wouldn’t take it, what would I do with it? I’d have to sell it back to you somehow. It’s not going to do anything,” Buffett said.

Bitcoin is about to experience a supply shortage, especially with the introduction of spot bitcoin exchange-traded funds (ETFs) in the United States, according to CryptoQuant’s “Weekly Crypto Report.” This increase in demand, along with a dwindling supply, will likely lead to a major shift in the bitcoin market. But what exactly causes this shortage in bitcoin supply?

CryptoQuant’s analysis highlights a worrying trend of declining sell-side liquidity. The report notes: “Record demand for bitcoin combined with declining sell-side liquidity has resulted in bitcoin’s liquid supply falling to its lowest ever in terms of demand months.”

Currently, it is estimated that sell-side inventory can only meet growing demand for approximately twelve months. This analysis focuses on “accumulating addresses,” which are wallets that have not made any outgoing transactions, suggesting that actual demand may be even higher.


The article is in Dutch

Tags: Good morning Bitcoin Bitcoin worth gold Supply shortage looms

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