Bitcoin Supply Metrics

Definition ∞ Bitcoin Supply Metrics are quantifiable data points that measure the distribution, movement, and availability of Bitcoin on its blockchain. These metrics include total circulating supply, liquid supply, illiquid supply, and exchange reserves. They provide critical insights into the underlying market dynamics and investor behavior. Analysis of these figures helps determine the scarcity and potential future price movements of Bitcoin.
Context ∞ Financial news often cites Bitcoin Supply Metrics to assess market health and predict price trends. Changes in illiquid supply or exchange balances are closely watched for indications of investor conviction or potential selling pressure. These data points are essential for on-chain analysts to gauge the supply-demand equilibrium.