BTC, or Bitcoin, is one of the ecosystem’s biggest and most established cryptocurrencies. However, the coin faced tremendous upheavals since the US presidential election results were released in November 2024. During the same time, the overall supply of BTC outside of the exchange has climbed from 17.99 million to 18.3 million, as per the Santiment data.
This considerable drop in the overall supply of the token has eased the selling pressure. Furthermore, consistent demand for a token generally pushes the price higher. Therefore, this dearth of BTC tokens in the market is a great sign. This dearth can help BTC regain its bullish momentum and move towards or break its all-time-high record.
Matthew Sigel of digital asset research and management company VanEck researched 20 state-level BTC reserve bills. The findings suggest that BTC traders could expect around $23 billion in demand for BTC if the bills are enacted. Going by the current pricing, this could be equivalent to 247,000 BTC in demand from institutional investors.
Data released by Bitbo.io suggests that only 1.039 million tokens are left for mining. Subsequently, the data also suggests that around 95% of mined BTC is held in wallet outside exchanges or in circulation. These tokens are usually held by whales or big corporations who want to be at the top of the crypto food chain.
Need For Crypto Reserve
The current dearth of BTC might sustain the bullish tendency of the market. However, it does call for a BTC reserve. The newly elected US president, Donald Trump, realized this need and has proposed the government create a BTC reserve. Almost all country have their reserve of gold and natural resources. Therefore, including BTC in that list can revolutionize the landscape and provide the needed recognition that digital assets should have gotten long ago.
In fact, if the US government considers building a crypto reserve for BTC, this could drive the price higher and sustain a bullish momentum. It could also improve the fear/greed index that suggests if the market is willing to buy or let go of crypto assets. Therefore, the US BTC reserve can be an important milestone. Follow for more crypto news.
