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Bitcoin mined has crossed the 19.96 million mark, meaning over 95% of Bitcoin in existence has been issued. The largest cryptocurrency could soon experience a scarcity amidst fast-paced BTC withdrawals from exchanges. U.S. President Donald Trump’s plan for a strategic Bitcoin reserve and developments like institutional adoption and Layer 2 rollout on BTC could catalyze demand for the digital asset.  Bitcoin scarcity and BTC demand drivers Bitcoin supply on exchanges decreased by nearly 15% since the declaration of the U.S. Presidential election results in November 2024. In the same timeframe, supply outside of exchanges has climbed from 17.99 million to 18.3 million, according to Santiment data.  Typically, a decline in supply on exchanges and an increase in BTC tokens held by wallets outside of exchanges is considered a bullish sign for the digital asset. The volume of BTC held on exchanges has hit its lowest level in nearly three and half years.  A drop in exchange supply eases selling pressure, and consistent demand historically drives prices higher.  Bitcoin supply on exchanges and outside of exchanges | Source: Santiment Matthew Sigel, Head of digital assets research at asset management giant VanEck analyzed 20 state-level Bitcoin reserve bills. Sigel predicts that if the bills are enacted, Bitcoin traders could expect $23 billion in demand for BTC. At current prices, the equivalent of 247,000 BTC demand could emerge from institutional investors.  The sum ascertained by Sigel is independent of pension fund allocations, likely to rise if legislators move forward. We analyzed 20 state-level Bitcoin reserve bills.If enacted, they could drive $23 billion in buying, or 247k BTC. This sum is independent of any pension fund allocations, likely to rise if legislators move forward. pic.twitter.com/5AZnkiwTZf — matthew sigel, recovering CFA (@matthew_sigel) February 12, 2025 Data from Bitbo.io shows that only 1.039 million BTC (BTC)…

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Filed under: News - @ February 14, 2025 12:25 pm