Bitcoin will be hard to buy in the future as the growth of large bitcoin holders reduces stocks on exchanges

There is a noticeable trend in the bitcoin world — the available supply on cryptocurrency exchanges continues to decline, which increases the likelihood of a supply shock in the future.

Cryptocurrency exchanges are experiencing a significant reduction in available bitcoin, which could lead to shortages on these platforms. This is a situation that can cause a supply shock, especially if institutional investors start buying BTC in large quantities. The combination of high demand from large players and a shrinking supply could push the price of the first cryptocurrency up, which could lead to a new bull cycle.

However, it is important to keep in mind that the supply of BTC has been declining for quite some time. Moreover, we have experienced several long bearish cycles during this period. The shrinking supply of bitcoin does not guarantee a bull market, but rather indicates a change in the holding pattern. It seems that more and more investors prefer to keep their Cryptocurrencies off exchanges, which may indicate a longer-term investment period.

Moreover, a decrease in the available trading supply on exchanges could lead to liquidity problems. Traders and investors need a certain level of liquidity so that they can open and close positions at their discretion.

If liquidity is low, it can lead to higher slippage, which will affect the profitability of trades, especially for large investors. However, in the case of a strong bull market, the scenario is likely to change in favor of increased supply. Historically, during periods of price increases, more owners are interested in selling their HTSs, which tends to increase the available supply on exchanges, bringing the indicator back to a balance of interests. Thus, the current declining supply may start to grow quite quickly.