Bitcoin continues to move higher after that beautiful bounce off of the fifty-day moving average. Bitcoin has closed about fifty thousand dollars for 22 days straight.
The more you think about it, the more you realize how incredible this is. Prices above fifty thousand are now the new normal.
The chart above illustrates the HODL Waves; it shows that nearly 10% of the total amount of Bitcoin has moved into the hands of new buyers over the past six months. In the past few months, many people have bought the tops on Bitcoin, a lot of money is flooding into the market around this price range, and the price does nothing but continues to move higher and higher, and it is moving mainly into the hands of hodlers.
If you look at the Liquid Supply Chain chart, this chart shows coins moving from a liquid readily tradable state to a liquid state. We are seeing coins moving from exchanges and hardware wallets to be hodled. Over more than a hundred thousand Bitcoin a month on average has been accumulated during this bull run. There were also massive peaks of accumulation; Hodlers collected over two hundred thousand Bitcoin in both January and March.
Total Bitcoin on exchanges has been on a steady downtrend for months, continuing to go down. Even during that time, we still had massive supply dumps by miners, the supply kept falling, and there was supply, but demand continued to surpass it.
January experienced incredible selling pressure from miners, but miners barely sell their daily total mined Bitcoin since that time.
We are currently seeing the first significant wave, the first big surge with investors hurrying to get a position before it is too late. That new all-time high of over twenty thousand dollars signaled a green light for everybody, and we are still early in the current market cycle.
Kathy Wood of Arc Invest, who was recently on a podcast, stated that if we add all of the potential demand, relative to the limited supply, we come up with incredible numbers over the long term, we have just begun, one trillion dollar market capital is nothing compared to where this asset will ultimately be. She also said that Bitcoin is the first genuinely new asset class since the Amsterdam Stock Exchange created equities back in the 1600s.
Bitcoin still represents a fantastic opportunity, and Bitcoin can and will most probably challenge the ten trillion dollar market capital of gold, which is 10x of the current market capitalization of Bitcoin. One day, we may even see Bitcoin reach a million dollars in price; this is approximately 20x from where we currently are. We may see a million dollars by the end of the decade, but half a million dollars is an excellent price target. Bitcoin at five hundred thousand is possible and maybe sooner than we think.
