Analysts from the crypto industry are too much arguing about the future of Bitcoin these days. They are of the view that the legendary cryptocurrency’s reserves are stumbling at a rapid pace. To them, if the reserves for Bitcoin continue to decline then there will be a shortage of Bitcoin sellers very soon.
Earlier in March 2020, Bitcoin had undergone a major crash which had caused an acute decline in its reserves. Resultantly, Bitcoin exchanges reported a decline from 2.95 Million BTC to 2.70 BTC was caused subsequently in March.
Currently, it is reported that in less than seven months approximately US$ 0.25 Million BTC were transferred from exchange reserves. This indicates a significant decline of about US$ 3 Billion approximately which sends an alarming indication to Bitcoin.
The analysts warned a potential decrease in the number of Bitcoin sellers if the trend is not taken care of. Explaining their argument, they said that retail sellers are not disposing off their Bitcoins because of their own reasons. Secondly, more and more institutions from the private sectors are acquiring too many Bitcoins.
Notably, the decline in the number of sellers and the growing demand of fresh buyers, is indicating optimistic trending for Bitcoin.
One of the patron Bitcoin investors known as “Oddgems” stated that Bitcoins are transferring from exchanges to individual wallets. In common terms this means that these individuals would want to hold Bitcoins for a lengthier period, he said.
Another famous Bitcoin trader namely Michael van de Poppe of the Amsterdam Stock Exchange shared his thought. He said that a large number of institutions are investing heavily in acquiring Bitcoins. This indicates that a lot of crypto-asset is kept in cold wallets. He also said that he is certainly looking at the Bullish indicator with regard to Bitcoin.
From the end of September, Bitcoin is being traded for over US$ 11,000. However, Bitcoin remained under US$11000 for a much longer period than expected. It went high as US$ 11,500 in the second week of October. Yet the story of Bitcoin’s high could not live long enough and once again the price fell.
But it seems that the hopes of Bitcoin enthusiasts are stronger than bricks. They said that the trending of Bitcoin for being traded over US$ 11,000 is a positive indicator and a Bullish.