11/02 ANDY HOFFMAN (CryptoGoldCentral.com): MASSIVE OTC Bitcoin HODLing Portends MAJOR Supply Tightness
As Central banks perpetually inflate – and with increasing commonality, hyperinflate their currencies – the power of Bitcoin’s deflationary “monetary policy” becomes more obvious to the world’s BIGGEST investors. This is why the clarion call to approve institutional crypto products is becoming a cacophony – perhaps, as early as today…
https://twitter.com/Andy_Hoffman_CG/status/1058132474344030208
https://twitter.com/Andy_Hoffman_CG/status/1058328264161120257
https://twitter.com/Andy_Hoffman_CG/status/1056529577583947777
…not to mention, why the “issue” of custodial crypto solutions is rapidly dissipating…
https://twitter.com/Andy_Hoffman_CG/status/1058313127735873536
https://twitter.com/novogratz/status/1051875013102632960
This year’s Bitcoin bear market – which in reality, ended at the Hoffman Line on February 6th – has seen a period of massive consolidation, in which enormous amounts have passed from weak to strong hands…particularly, the institutions that started buying once Bitcoin surpassed the Hoffman Line (a $100 billion market cap) exactly a year ago.
Which, I might add, will likely multiply dramatically January 1st, when a new wave of Crypto Hedge Funds launch - particularly if one or more Bitcoin ETFs are approved, and/or the Bakkt physical Bitcoin futures product. Let alone, as we head into the second half of 2019 – during which, the August 2019 Litecoin halving will occur and the market will start to discount the May 2020 Bitcoin halving.
https://twitter.com/Andy_Hoffman_CG/status/1058331475144142848
Remember, only 17.3 million Bitcoin exist – of which, as much as six million have been permanently lost…not including the million in Satoshi’s wallet that will likely never move. So, when prices are smashed down, as they were this year, supply absorption by deep-pocketed, long-term HODLers makes the available supply contract further – yielding the likelihood of an utterly massive price explosion in the coming years…or perhaps, months or weeks.
https://twitter.com/Andy_Hoffman_CG/status/1046384730382319616
Case in point, during October, a mere five Bitcoin addresses cumulatively accumulated 133,000 Bitcoin worth $850+ million, or nearly 1% of all outstanding supply. In other words, MASSIVE HODLing just above the Hoffman Line…that actually, in the context of the $200-$300 TRILLION legacy financial markets, amounts to mere chump change.
https://twitter.com/RodgersResearch/status/1057741476183060480
In other words, the case for a MASSIVE Bitcoin supply shortage grows more powerful each day. This is why we HODL BTC on offline hardware wallets like Trezors, and wait for the inevitable.