Bitcoin Supply on Exchanges Hits Decade Low — CryptoQuant
Since 2018, Bitcoin reserves on centralized cryptocurrency exchanges have decreased by 1.5 million BTC, now totaling just over 2.4 million coins. According to analysts at CryptoQuant, this reflects a broader trend of investors moving funds into cold storage for long-term holding — likely driven by growing interest in self-custody of digital assets.
The outflow of Bitcoin from exchange reserves accelerated after the April 2024 halving, when the mining reward was cut in half, reducing the inflow of new coins to the market.
“Such dynamics could lead to a situation where demand exceeds the available supply of Bitcoin. On one hand, this creates potential for price growth if buying interest remains strong; on the other, limited liquidity could significantly increase volatility,” CryptoQuant experts explained.
Between 2013 and 2021, similar waves of declining Bitcoin supply preceded bull runs in the cryptocurrency’s price. However, specialists caution that predicting a similar outcome now is difficult, as the crypto market depends on a complex mix of political and macroeconomic factors, including the U.S. Federal Reserve’s interest rate policy.
Earlier, CryptoQuant analysts reported that the crypto market is undergoing one of the largest corrections in recent years, with Bitcoin’s open interest falling from $47 billion to $35 billion.
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