Bitcoin Whales Scoop Up Bargains Exchange Supply Hits Lowest Point Since December 2022

The supply of Bitcoin (BTC) on centralized cryptocurrency exchanges has been steadily decreasing in recent months due to positive global events sparking a surge in accumulation of the flagship coin. The most recent Bitcoin halving has lowered the coin’s annual inflation rate to below 2 percent.

Furthermore, the approval of several spot Bitcoin exchange-traded funds (ETFs) in different regions has led to the accumulation of over 1 million coins, representing approximately 5 percent of the total supply. Fidelity’s FBTC emerged as the leader among US spot Bitcoin ETFs on Wednesday, attracting $50.6 million in cash inflows, resulting in a net inflow of around $100.8 million.

According to data analysis from Santiment, the supply of Bitcoin on exchanges has dropped to its lowest level since December 2021, standing at approximately 942,000 coins. This decline has coincided with increased regulatory clarity worldwide, attracting more institutional investors. For example, Brazil’s largest bank, Itau Unibanco, introduced crypto trading to all its customers.

CryptoQuant’s data revealed that more than 20,000 Bitcoins have been transferred to wallets associated with large crypto investors in recent days, following heightened market volatility. The anticipation of interest rate cuts in the United States later this year, along with similar moves by the European Central Bank and Bank of Canada, has bolstered overall bullish sentiments in the crypto market.

Bitcoin’s price has been fluctuating between $61,000 and $72,000 over the past four months, with no clear breakout. According to the analysis of Captain Faibik, the price needs to consistently close above $72,000 to pave the way for a rally towards $90,000 in the short term.