Definition ∞ BTC Supply Tightening describes a market condition where the amount of Bitcoin available for sale on exchanges or in easily accessible wallets decreases. This reduction in available supply typically results from investors moving their holdings into long-term storage or illiquid positions. It suggests a collective preference for holding Bitcoin rather than trading it.
Context ∞ Reports on BTC supply tightening are frequently cited in market analysis as a precursor to potential price appreciation. A sustained reduction in accessible Bitcoin often indicates strong holder conviction and diminished selling pressure, providing a fundamental basis for bullish sentiment. This trend is closely monitored by analysts to gauge market health and future price direction.
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