🚀 Bitcoin's recent surge to $73,000, followed by a retracement, is indeed closely tied to its scarcity. The decreased amount of Bitcoin available for purchase on centralized exchanges has played a significant role in this scarcity. According to reports from AMBCrypto and CryptoQuant, nearly 50,000 Bitcoins were withdrawn from exchanges throughout February, leading to a sharp drop in the cryptocurrency's available supply for purchase.
🐋 Another factor contributing to Bitcoin's scarcity is the increasing number of institutional investors, often referred to as whales in the crypto market. Glassnode data shows a 4% increase in the number of unique entities holding at least 1,000 Bitcoins in February, indicating a growing presence of institutional investors in the market.
💼 Additionally, the launch of Bitcoin spot ETFs has attracted traditional finance investors into the cryptocurrency market, further reducing the available supply of Bitcoin. The psychological impact of ETFs has fueled bullish forecasts and optimism surrounding mass crypto adoption.
Regarding WhiteBIT and NEAR Protocol, while they're significant in the cryptocurrency space, they may not directly impact Bitcoin's scarcity. However, WhiteBIT's integration with NEAR Protocol showcases the growing trend of interoperability and cross-chain functionality within the blockchain ecosystem. This integration allows for the mining of NEAR's HOT token and the withdrawal of USDT and USDC for free, impacting the performance of these currencies and potentially influencing market dynamics.
Despite these developments, scarcity remains a crucial metric for Bitcoin, especially amid halving events. A decrease in exchange supply suggests reduced selling pressure and a potential shift towards long-term holding, which is typically considered bullish for the cryptocurrency. As Bitcoin continues to see increased institutional adoption and investor interest, its scarcity becomes even more pronounced, driving its price higher in the long term. 📈💰