Coin Metrics credited the successes of Bitcoin heavily on the slew of institutional investors starting to see the genuine potential of the crypto. Market giants such as MicroStrategy, Paypal, and Square have since made sizeable investments towards the crypto, pushing the numbers associated with it to new record-breaking heights.
Furthermore, the data report noted that more than $300 billion has since been added to the market cap of BTC this 2020, all the while stating that the trend is expected to persist well into the next year.
With all that being said, BTC’s limited supply is now seemingly failing to cope up with the surging demand. With the entry of many billion-dollar firms into the fold, demand for BTC is now seemingly too great for its supply to follow through. several data reports show that the total number of BTC within exchanges has been on a steep decline, and it has been affecting the market tremendously.
According to Glassnode CTO Rafael Schultze-Kraft, Bitcoin is currently in a supply and liquidity crisis. This explains why the crypto’s price market value ballooned over the past few months.