Bitcoin (BTC) supply on centralized exchanges (CEX) has dropped to new lows following bullish pressure in the market in the last 48 hours. New data from on-chain analytics firm Glassnode shows Bitcoin supply on exchanges at 1,728,782 BTC reaching new lows as sentiments swing upwards.

The metric saw a 24-hour exit of 23,654 BTC while weekly outflows stood at 19,859 BTC. This recent reduction in Bitcoin supply can be seen as figures increased as bullish pressure ignites around the assets. Monthly flows were significantly lower at 9,509 BTC. 

At press time, Bitcoin exchanges hands at $65,410 after a series of recovery efforts and trading fluctuations this week. The asset’s price surged to this point from a little above $60,000 last week.

Whales Move Assets Off Exchanges

Generally, mass migration of assets from crypto exchanges points to a bullish pressure because it signifies long-term holdings. This is because assets are transferred to other custodians while flows to exchanges are bearish because it is easier to sell those assets

This is similar to miner reserves and movements before the Bitcoin halving as they reposition for a 50% slash in mining rewards. In the last 24 hours, Binance recorded outflows of 7155 BTC while Coinbase Pro saw a massive 16,075 BTC as analysts tip institutional purchases. 

Last month, a report from crypto exchange Bybit suggested that Bitcoin supply on exchanges will run out in nine months. According to the report, the Bitcoin halving and inflows to spot Bitcoin ETFs might lead to that outcome. 

Market Sentiment Sees Bitcoin Supply Plunge 

The uptick in crypto assets sparked bullish sentiments leading to accumulation and long-term positions. As a result, Bitcoin supply on exchanges has fallen in the last two days. The release of a positive Consumer Price Index (CPI) and new institutional disclosures of spot ETF exposure have led to the status quo. 

This week several traditional finance firms revealed their exposure to spot Bitcoin ETFs sparking new price surges in the market. 

Also Read: Ripple CLO Hails Senate Vote To Overturn SEC’s Anti-Crypto Rule 

The post Bitcoin Supply on Exchanges Falls as Bullish Pressure Mounts appeared first on CoinGape.

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Filed under: News - @ May 16, 2024 10:25 pm