The bull case for bitcoin is linked to the cryptocurrency’s limited supply of only 21 million coins. But scarcity is forming in another way, revolving around investor behavior. According to research from Ark Invest, investors are holding onto bitcoin for longer and longer durations. By holding the asset rather than selling, it decreases the supply of coins available on the market at any given moment, which can drive up price. This suggests that market participants see the long-term value and potential future payoff the asset possesses.
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