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Bitcoin price ready for breakout with 19 million BTC mined, fueling supply crisis

  • Bitcoin price is on track to breakout as 90% of BTC supply has been mined. 
  • The nineteen millionth Bitcoin has now been mined, hitting a key milestone and fueling a supply crisis in BTC. 
  • Two million Bitcoins are left to mined on a fixed issuance schedule, alongside rising outflow of BTC across exchanges. 

Bitcoin price could continue to rise according to FXStreet analysts. With 19 million BTC mined, less than 2 million remain to be unearthed and into the circulating supply. 

Bitcoin price could breakout with brewing supply crisis

Proponents believe Bitcoin derives its value from its limited supply. Interestingly, now that the nineteen millionth Bitcoin has been mined, the asset’s supply is much shorter than before. 

The last two million BTC will be mined on a fixed issuance through the supply schedule and mining activities. This has fueled a bullish narrative among investors. Alongside the supply shortage, the amount of Bitcoin  leaving exchanges has seen a massive spike in leaving exchanges. 

Crypto intelligence platform Glassnode revealed that 96,200 Bitcoins are leaving exchanges every month. The outflow volume continues to rise, and aggregate outflows of this magnitude have only been observed on a handful of occasions in the asset’s history. 

The March 2020 liquidity crisis was followed by similar outflows of BTC  from cryptocurrency exchanges on a massive scale. The supply of the asset is more limited than ever, and this milestone demonstrates how Bitcoin’s scarcity has fueled a rally in the asset. 

Scarcity has remained central to Bitcoin’s value proposition and fueled a bullish outlook among institutional investors and traders worldwide. 

In his latest newsletter, Willy Woo, a renowned on-chain analyst, revealed that Bitcoin spot buying is at historic highs, seen in previous bull markets. Bitcoin holders have been adding a significant amount of BTC to their holdings. The influx of demand has fueled bullishness among investors. 

FXStreet analysts believe Bitcoin’s recent pullback was healthy for the asset’s uptrend. Bitcoin price has hit a new 2022 high and a new milestone. Analysts argue there is a hidden bullish divergence in the Bitcoin price chart and believe the asset is on track for a breakout. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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