Bitcoin, the world’s leading cryptocurrency, has been making waves in the financial world with its record-breaking performance. In the past year alone, its transaction volume reached a staggering 6,324,719 BTC, accounting for 32.18% of the total Bitcoin volume. This rise in popularity has been fueled by its limited supply and growing acceptance as a mainstream form of payment.
But perhaps what is even more impressive is the number of Bitcoins currently in circulation. Exchanges around the globe hold over 1.8 million Bitcoins, while the holdings of Exchange-traded funds (ETFs) have increased by more than 200,000 Bitcoins, bringing the total to over 800,000 Bitcoins. This means that, at any given time, there are approximately 5 million Bitcoins actively in use.
It is worth noting that these figures do not take into account the ever-growing number of Bitcoins held by major companies, such as MicroStrategy, as well as those held or seized by various governments. While not all of these Bitcoin holdings are actively used, there is certainly some overlap, leading to a reasonable estimate of 5 million active Bitcoins in circulation.
Coupled with the current market value of Bitcoin, which stands at approximately US$67,000, it would only take around US$500 billion to buy all the Bitcoins currently in circulation. This is a relatively small amount considering the total market value of Bitcoin, estimated to be over US$1.3 trillion.
Moreover, in the past two months alone, ETFs have seen a net inflow of more than 10 billion U.S. dollars. This significant influx of traditional capital into the market, combined with the additional issuance of USDT, a stablecoin pegged to the US dollar, could potentially further accelerate the demand for Bitcoin.
Therefore, it is safe to say that if the price of Bitcoin continues to rise, it will only be a matter of time before all the Bitcoins in circulation are bought up. Even if the price were to experience a dip, traditional capital will likely continue to invest in Bitcoin, especially in the absence of any major negative events in the global economy.
In conclusion, the circulation of Bitcoin is a crucial factor to consider when analyzing the market for this revolutionary digital currency. With a limited supply and increasing demand, it is no surprise that the price of Bitcoin has been surging and is expected to continue its upward trajectory in the future. So, whether you are a long-time Bitcoin investor or just dipping your toes into the world of cryptocurrency, understanding the circulation of Bitcoin is essential to making informed investment decisions.
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