Bitcoin price rose to $70,000 briefly this week but faltered shortly after failing to maintain momentum and taking a sharp turn.
At the time of writing, the world's largest cryptocurrency is trading at just over $67,000. However, with stock market supply falling to December 2021 lows, data suggests that a bullish reversal may be imminent.
Scarcity of Bitcoin on exchanges
According to Santiment tweetthe supply of Bitcoin on exchanges has reached its lowest level since December 2021. Currently, about 942,000 Bitcoin are available on these trading platforms.
Although Bitcoin is unable to make a meaningful recovery, this reduction in available supply on exchanges may limit selling pressure. This trend mainly indicates bullish sentiment among investors who are holding on to their stocks rather than unloading them.
Ethereum and Tether are increasingly being offered on exchanges. For the altcoin, the supply is around 18 million ETH. While this is not a high number at all, as it was recorded at 29.89 million ETH in May 2020, this development is crucial as it comes at a time when investors are eagerly awaiting spot ETH trading in the US.
Additionally, the supply of Tether on exchanges is currently hovering near an all-time high of around $16.95 billion USD, recorded in July 2022. Such a high supply of stablecoins on exchanges can actually be considered a bullish perspective as it means investors are sitting on the sidelines. Ready to make acquisitions.
Historically, though, when the supply of Bitcoin, which can be easily traded, is limited, it indicates that holders are not looking to sell. Such a trend could reduce downward price pressure across the broader market.
“Bitcoin supply on exchanges has now fallen to its lowest level since December 2021 (around 942,000 coins). Meanwhile, Ethereum and Tether are back in action. Historically, there is less risk for all cryptocurrencies, while the supply available for sale is… BTC to USD is limited.”
Bitcoin whales are buying
The Bitcoin accumulation trend can be further validated through CryptoQuant analysis Which indicates the flow of more than 20,000 Bitcoins into whale wallets. This group of large investors appears to have used the recent price correction as an opportunity to increase their holdings.
Such actions from whales indicate strong investor interest amid short-term market volatility.
Bitcoin supply on exchanges hits bottom in December 2021: what does this mean for BTC price? appeared first on CryptoPotato.
