If anyone asks you why Bitcoin is going up lately, just show them one simple chart...

The price of bitcoin is really all about supply and demand. Technically the price of most things is determined by supply and demand, well besides taxes, subsidies, tariffs etc etc etc.

Anyways, the supply and demand dynamics are so apparent with bitcoin because the supply is always known. The rate of new supply is known and the existing supply is known, though the actual float is somewhat of a mystery due to lost keys etc.

Which means, the biggest influencer on the price is simply changes in demand.

As demand goes up, the price soars, when it drops, the price falls.

While it is hard to measure demand without using a price chart, we can certainly see when the right environment is there for demand to send the price soaring.

Which is exactly what we have been seeing for months now.

Check this out:

(Source:

https://twitter.com/n3ocortex/status/1358434279651434502/photo/1

- n3ocortex

)

This is a chart of the bitcoin supply sitting on exchanges mapped out using a 200 day moving average.

As you can see, the supply on exchanges has been falling and falling and falling...

What does this mean?

As I stated above, this is probably the most important chart in bitcoin and crypto right now and the easiest and simplest explanation for why bitcoin is going up.

More demand is coming in than there is supply on exchanges to counter the demand.

The neat thing about this is that as the price of bitcoin climbs higher, the supply on exchanges is dropping at an ever faster clip.

The line is starting to slope steeply down at this point, which again is interesting with the prices at all time highs.

One might think that with prices at these levels people would be in a hurry to send their bitcoin to exchanges and sell them.

However, the exact opposite is happening.

The higher the price goes the more people are snatching up the bitcoin on exchanges and moving them to cold storage.

This likely has to do with Michael Saylor others like him buying large amounts of bitcoin on exchanges and socking them away for years.

Also, it may have something to do with upcoming regulatory changes where US based users may have to disclose any transfers to self hosted wallet in excess of $3k.

The jury is still out on whether that will actually go into effect, but it's out there never the less.

Until this trend starts to reverse, the price of bitcoin is likely to keep climbing higher.

Stay informed my friends.

-Doc