Bitcoin Supply Drop Sparks Bullish Sentiment as Price Hits $67K

• Bitcoin’s price momentarily surged to $70,000 this week but subsequently faced a sharp decline as it failed to maintain its upward momentum.
• As of now, Bitcoin is trading at just over $67,000, with exchange supply shrinking to levels not seen since December 2021, suggesting a potential bullish reversal.
• Exchange data indicate a notable decrease in Bitcoin supply, a trend that may ease selling pressure and indicate a bullish sentiment among investors.

Bitcoin’s exchange supply is at its lowest since December 2021, hinting at a possible bullish trend as holders refrain from selling.

Bitcoin Scarcity on Exchanges

According to a recent tweet from Santiment, Bitcoin’s supply on exchanges has dropped to a level not seen since December 2021, with approximately 942,000 BTC currently available. This decline in available supply could signal a growing bullish sentiment among investors, as they appear less willing to sell off their holdings.

Simultaneously, the supply of Ethereum and Tether on exchanges has been on the rise. Ethereum’s current supply is around 18 million ETH—though not at an all-time high, this figure is significant as investors await the approval of a spot Ether ETF in the US.

Moreover, Tether’s supply on exchanges is nearing its all-time high of around 16.95 billion USDT, recorded in July 2022. This substantial supply of the stablecoin indicates that investors are poised to make market moves, reflecting a readiness to invest when the opportunity arises.

Historically, a restricted supply of readily tradable Bitcoin on exchanges suggests that holders are not looking to sell, potentially reducing downward price pressure across the market.

“Bitcoin’s supply on exchanges has now dropped to its lowest level since December 2021 (~942K coins). Meanwhile, Ethereum and Tether are moving back on. Historically, there is less drop-off risk for all of crypto while $BTC’s available supply to be sold is limited.”

Bitcoin Whales Are Buying

CryptoQuant reports confirm that Bitcoin whales have been actively accumulating, with over 20,000 BTC flowing into their wallets. This strategic acquisition during a price correction highlights robust investor confidence and interest from large-scale holders.

The actions of these whales signal strong faith in Bitcoin’s long-term potential despite short-term market volatility, further supporting a bullish outlook.

Conclusion

In summary, the declining Bitcoin supply on exchanges coupled with active accumulation by whales suggests limited selling pressure and a bullish outlook for the cryptocurrency. As investors hold onto their assets and prepare for future opportunities, the overall sentiment in the market remains optimistic. The increasing supply of Ethereum and Tether on exchanges also underscores a readiness to invest, potentially driving further developments in the crypto landscape.