An analyst has explained how the growth in “paper BTC” could be counteracting a bullish Bitcoin supply shock from taking effect. Liquid Bitcoin Supply Has Dropped, But Paper BTC Is Still At Significant Levels In a new post on X, analyst Willy Woo shared insight into how the paper BTC compares against the real BTC being traded. According to the analyst, “paper BTC” refers to the combined futures open interest value. Here is a chart that shows the trend in the ratio between the two types of Bitcoin over the past couple of years: The data for the paper vs real BTC ratio since January 2021 | Source: @woonomic on X The graph shows that the ratio’s value has fluctuated between 0.2 and 0.3 in recent months, suggesting that the paper Bitcoin has been 20 to 30% more than the real coins during this period. The real supply of the cryptocurrency may be divided into three categories: illiquid, liquid, and highly liquid. The on-chain analytics firm Glassnode puts coins into these divisions based on the behavior of the investors holding them. Rela ..
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