Bitcoin News: Exchange Supply Hits Bottom At 1.7M BTC, Price To Rally?
The Bitcoin (BTC) exchange reserve has reached an all-time low, plunging to nearly 1.70 million BTC. This significant decrease has sparked discussions about the potential for a price rally. The surge is expected to be driven by a combination of demand shock and inelastic supply dynamics.
Bitcoin Exchange Reserve At All-time Low
Thomas Fahrer, co-founder of Apollo, highlighted the current market sentiment in a post on X. He stated, “Bitcoin Exchange Reserves are at all time lows. Right on time for a second wave of ETF Flows.” Moreover, he believes that “demand shock + inelastic supply” will lead to a parabolic run in the Bitcoin price.
His statement underscores the optimistic outlook among investors who see this low reserve level as a precursor to a substantial price increase. Currently, the Bitcoin exchange balance stands at $1.72 million BTC, according to Coinglass data.
Exchange reserves are a key metric in understanding market dynamics. They represent the cumulative result of exchange inflows and outflows. Moreover, a decreasing trend in exchange reserves suggests a reduction in selling pressure, as fewer coins are available for sale on exchanges.
Conversely, an increasing trend typically indicates more coins are entering the market, increasing the selling pressure. The current drop in the Bitcoin exchange reserve implies that market participants are withdrawing their coins from exchanges. The withdrawal islikely for long-term holding rather than immediate sale.
Hence, this behavior points to a bullish sentiment, where investors expect higher future prices and are thus reluctant to sell at current levels. Additionally, Thomas Fahrer provided insights into institutional investment trends, mentioning Horizon Kinetic Asset Management’s substantial allocation to Bitcoin. He revealed, “Forget 2-3% Allocation. Horizon Kinetic Asset Management has $913M of #Bitcoin invested in IBIT + GBTC making up 14% of their $6.5B AUM. This is investing.”
Also Read: Bitcoin Price To Hit New Highs, But There’s A Condition
Will BTC Price Regain Momentum?
Bitcoin has already shown signs of reversal after it rebounded above $67,000 after losing momentum earlier. However, Bitcoin’s 24-hour price change is still in the red. At the time of reporting, the BTC price was down 0.54% to $67,030.16 on Monday, May 20. The oldest crypto boasted a market cap of $1.31 trillion.
On the contrary, the 24-hour trade volume for BTC soared 38.91% to $22.60 billion. On the other hand, Bitcoin longs liquidated $16.71 million, which could drive the BTC price lower. Nonetheless, shorts gave tiff competition with over $10 million liquidations.
Crypto analyst Ali Martinez also weighed in on the situation, noting a critical support level for Bitcoin. In a post on X, he wrote, “With over 530,000 $BTC transacted at $66,250, this is a crucial support level! If it holds, #Bitcoin has strong potential for further gains.” This observation suggests that if Bitcoin maintains its price above this support level, the market could see further upward momentum.
Also Read: Bitcoin Whale Buys 1,590 BTC Amid Price Flux, What’s Next?
The post Bitcoin News: Exchange Supply Hits Bottom At 1.7M BTC, Price To Rally? appeared first on CoinGape.
Welcome to Billionaire Club Co LLC, your gateway to a brand-new social media experience! Sign up today and dive into over 10,000 fresh daily articles and videos curated just for your enjoyment. Enjoy the ad free experience, unlimited content interactions, and get that coveted blue check verification—all for just $1 a month!
Account Frozen
Your account is frozen. You can still view content but cannot interact with it.
Please go to your settings to update your account status.
Open Profile Settings