Quantification of Bitcoin supply shortage

The following is from a recent issue of Deep Dive, Bitcoin Magazine’s newsletter on premium markets. To be among the first to receive these insights and other bitcoin market analysis in the chain directly to your inbox, sign up now.

When looking at the bitcoin supply, it is important to consider the condition of the float supply, an estimate of the bitcoin available in the market for sale. One way to estimate the float is to look at the short-term holder’s supply plus the supply balance on exchanges in total and as a percentage of circulating supply. If you add long-term holder supply to these two, the supply is almost identical to circulating supply.

The current floating supply is 5.52 million bitcoin worth $ 317 billion at today’s market price. But we know that any significant bid to take the bitcoin float off the market could cause the price to rise, all else being equal, and increase the USD market value of each new bid.

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