The post Bitcoin News: Exchange Reserves Crash, Supply Shock Incoming? appeared on BitcoinEthereumNews.com.

Bitcoin reserves on major exchanges have plummeted to their lowest level in three years, raising concerns about a possible supply shock. According to CryptoQuant data, the number of Bitcoin stored on platforms has reached its lowest point in three years at present alongside a notable rise in Bitcoin and gold market demand. Financial sector uncertainty builds as the market experiences fluctuations and declining network activity and rising gold purchases. Bitcoin Reserves Drop as Investors Accumulate Bitcoin exchange reserves show a substantial reduction, which demonstrates that long-term investors are actively collecting Bitcoin. The falling supply matches strengthening demand, thus this combination could possibly drive bitcoin prices upward. Researchers predict a supply constricting event that will drive Bitcoin value upward because of diminishing market stock. – Advertisement – The reluctance of institutional investors becomes evident through negative net flows totaling $186 million that occurred in US spot Bitcoin ETFs. Market uncertainty became more evident through the latest $171 million funds that entered the market, although yesterday showed a $171 million influx. The U.S.-China global trade tensions create disruptive market forces that influence investment decision-making and fluctuate risk-related perspectives. The price level below $95,000 could result in total leveraged long position liquidations surpassing $1.52 billion. The data provided by Coinglass demonstrates that such movements might result in a sudden market downfall. Bitcoin maintenance faces uncertain challenges because market players still practice caution as the price faces unpredictable volatility. CryptoQuant Data Shows Sharp Bitcoin Slowdown Network activity for Bitcoin shows a drastic decrease in performance, which creates doubts about the cryptocurrency’s sustainable future as its price stands steady. The Network Activity Index tracked by CryptoQuant has experienced a 15% decline since reaching its maximum point in November 2024 to show its most minimal observation in one year. Users and transactions have declined significantly because…

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Filed under: News - @ February 12, 2025 4:24 pm