A popular on-chain analyst believes a bitcoin rally is in sight as the leading cryptocurrency faces the possibility of a supply shortage.
Will Clemente says a bitcoin supply shock could trigger a significant spike in BTC.
“Hold on, guys. That thing will soon burst.
The supply shock is still in play this week. “
Clemente’s optimistic stance on BTC comes as he sees signals up the chain that point to the surge in bitcoin adoption around the world.
“Extremely optimistic about global Bitcoin adoption.
Blue: Offer from companies with 0.01-1 BTC.
Green: net user growth on the network.
All-time highs for new users. Hockey stops in the accumulation of small units. “
Source: Will Clemente / Twitter
The analyst adds that Bitcoin’s illiquid supply ratio has been on a steady upward trend since being sold off by the COVID-19 pandemic in March 2020. According to Clemente, the ratio can be calculated by dividing BTC’s illiquid supply by its accumulated or increasing supply.
“Here’s a really interesting long-term graph. After March 2020, the record expansion of the money supply changed investor behavior in the Bitcoin market. This metric shows the trend in the number of illiquid coins in relation to the total supply. More coins are locked up than ever. “
Clemente also points out that whales or units holding between 1,000 and 10,000 BTC have been on a shopping spree since early July. The analyst says these capital investors have added over $ 2.40 billion worth of BTC to their holdings in the past 14 days.
“Bitcoin whales have added +76,441 BTC to their holdings in the past 2 weeks.”
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