Bitcoin Exchange Reserves Don Reach 7-Year Low As Spot ETF Growth And Company Holdings Dey Cause Supply Squeeze
Bitcoin wey dem keep for exchange don fall go under 11%, don reach im lowest point since March 2018, as around 2.3 million BTC dey for exchanges now. This big drop, wey Glassnode and CryptoQuant talk about, show say investors dey hold Bitcoin for long time, dem dey move am from exchanges go private places like cold wallets and digital wallets. When the amount for exchange reduce, e mean say less people go rush sell am, and e show say people get strong mind to 'hodl' for market. The way dem introduce and people dey accept spot Bitcoin ETFs since January 2024 don make dem move plenty BTC go institutional custodians like BlackRock and Fidelity, wey make the supply for exchanges reduce more. Companies too dey buy plenty, with 80 companies now holding about 3.4% of all Bitcoin supply – especially MicroStrategy wey hold 580,000 BTC and new ones like GameStop and K Wave Media. The Bitcoin halving for April 2024 make new supply tight, while global economic situation – like the predicted 18% rise in global M2 money supply and US dollar wey dey weak – dey make Bitcoin more attractive as a way to fight inflation. Important on-chain metrics, like realized capitalization wey reach all-time high of $935 billion and continuous negative net exchange flows, confirm say retail and institutional players dey gather Bitcoin steady. Even with the price shaking small small recently because of wetin people like Donald Trump and Elon Musk talk, the main outlook for Bitcoin still dey good. Analysts believe say supply go shock because demand dey rise as supply dey get tight, and this fit push prices higher. As dem dey report this, Bitcoin dey trade around $105,216.
Bullish
Both of di tori wey dem write talk say Bitcoin money wey dem keep for exchange don drop plenty, reach seven years low, plus strong strong evidence for di blockchain say retail and big big investors dey hold am for long time. Di way spot Bitcoin ETFs dey grow recently and as companies dey embrace am don make more BTC comot from exchanges, wey make di liquid supply small. April 2024 halving go still reduce how many new ones dey comot, while global factors like plenty money wey dey circulate and dollar wey dey weak dey make Bitcoin fine as hedge. Even with small small price changes wey public figures dey cause, steady buying, negative net exchange flows, and realized capitalization wey don reach all-time highs dey show say demand for am strong well well. All dis signs dey show say di supply dey tight and people dey hold am strong, wey go fit make di price go up and maybe even cause supply shock. So, di news overall good for Bitcoin market.