How do on-chain metrics showing more coins stored offline help beginners gauge Bitcoin’s supply trends?
Why is this the correct answer?
This is correct because when Bitcoin moves into cold storage or offline wallets, those coins are no longer immediately tradeable on exchanges. For beginners, seeing exchange balances drop tells them supply available for buying has shrunk, which can exert upward price pressure if demand remains steady. Tracking these on-chain metrics helps new investors understand how much Bitcoin is being set aside by long-term holders versus being available for active trading.
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