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Bitcoin’s Exchange Reserves have reached multi-year lows, raising alarms about a potential supply shock that could ignite an upcoming bull run.
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With a decreasing supply available for trading, analysts speculate that strong demand could lead to a significant price surge.
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According to CryptoQuant, the ongoing trend of Bitcoin being moved to cold storage suggests a shift in market dynamics.
The decline in Bitcoin’s Exchange Reserves signals a potential supply shock, raising the question of whether this might fuel the next market bull run.
On-Chain Data Reveals Ongoing Bitcoin Accumulation Trends
The current trading range for Bitcoin is between $90,000 and $105,000, and recent data reflects a persistent accumulation trend. The 30-day moving average (30DMA) of the Exchange Inflow/Outflow Ratio remains below 1, indicating that more BTC is exiting exchanges than entering.
This situation often indicates a bullish sentiment among investors, suggesting a trend towards long-term holding rather than active trading.
If the outflow continues to dominate, a price rise may be on the horizon as the market adapts to the decreasing selling pressure.
Source: CryptoQuant
It’s important to note that some of the recorded outflows might be attributed to standard operations by centralized exchanges as they transition assets to custodial wallets and other investment vehicles.
Current Bitcoin Market Trends and Price Movements
As of the latest update, Bitcoin trades at $96,071, marking a -1.23% drop in the past 24 hours, and a -1.43% decline over the last week. The total circulating supply currently stands at 20 million BTC, equating to a market capitalization near $1.9 trillion.
The Market Value to Realized Value (MVRV) Ratio remains within a stable range, balancing investor sentiment against the valuation of the asset. Historical MVRV peaks and troughs reflect changing attitudes towards Bitcoin, with significant values such as 5.27 recorded in November 2013, compared to a low of 0.548768 in January 2015.
Source: IntoTheBlock
In the past year, the MVRV ratio experienced peaks of 2.75 in March 2024 and lows of 1.71 in September 2024, indicating a current stability in market sentiment, with only a +0.06% change in the last 24 hours.
Institutional Transactions Remain Robust
The frequency of Bitcoin transactions exceeding $100,000 shows significant variability within large-scale activity metrics. Recently, the number of such transactions stood around 15.43k, marking a 7-day low.
Source: IntoTheBlock
On February 11, 2025, transaction counts peaked at 21.67k, showcasing a surge in institutional activity. Despite some declines from earlier highs seen in January, overall transaction volume remains active, suggesting sustained interest from institutions and high-net-worth individuals.
What Lies Ahead for Bitcoin?
The ongoing reduction of Bitcoin reserves on exchanges maintains focus on the potential for a supply shock. If buyer demand persists or strengthens, Bitcoin could face upward price pressure.
The market is poised for further developments, with many analysts watching closely to determine whether this trend might precede the next significant bull run.
