When Bitcoin’s circulating supply declines while investor appetite holds steady or grows, the market experiences structural compression that drives prices higher.
Scarcity and absorption dynamics
Ongoing accumulation by corporate treasuries and publicly traded vehicles removes liquid coins from major exchanges. As the inventory available for immediate sale shrinks, any increase in buying volume forces purchasers to pay increasingly higher premiums to execute their orders.
As available liquidity contracts in the face of sustained institutional demand, upward pressure on Bitcoin’s valuation becomes virtually inevitable
Scarcity and absorption dynamics
Ongoing accumulation by corporate treasuries and publicly traded vehicles removes liquid coins from major exchanges. As the inventory available for immediate sale shrinks, any increase in buying volume forces purchasers to pay increasingly higher premiums to execute their orders.
As available liquidity contracts in the face of sustained institutional demand, upward pressure on Bitcoin’s valuation becomes virtually inevitable