Bitcoin Supply on Exchanges Hits 5-Year Low Amidst Growing Investor Demand
In a significant development for the crypto market, Bitcoin has reached its lowest percentage supply on exchanges in over five years, the current value being 11.7%. Amidst growing interest and demand for Bitcoin, CoinGape reported today that approximately 1.84 million wallet addresses have acquired a substantial amount of Bitcoins, totaling 910,000 coins.
Decreased BTC Supply on Exchanges
The decline in Bitcoin supply on exchanges can be attributed to several factors, including the recent development of a spot Bitcoin ETF application by BlackRock and the launch of the EDX Markets crypto exchange. These developments have sparked institutional interest and prompted financial giants to consider resubmitting their Bitcoin ETF applications with the US Securities and Exchange Commission (SEC).
Also Read: US SEC Gives Nod To First Ever Leveraged Bitcoin ETF
The regulatory green light by SEC allows investors to gain leveraged exposure to Bitcoin’s price movements, potentially amplifying their returns. The introduction of such a financial instrument has sparked renewed optimism and confidence in Bitcoin, contributing to its sustained position above the $31,000 mark.
Bitcoin wallet addresses acquired 910,000 Bitcoins as more people are choosing to hold Bitcoin outside of exchanges, contributing to the decrease in the percentage of Bitcoin supply on exchanges.
Bitcoin Price Action
Recent market data from K33 Research highlights that Bitcoin gained an impressive 30% during U.S. market hours and accounted for 50% of the total trading volume. This significant surge in price during U.S. market hours indicates a preference for holding Bitcoin, further reducing the supply available on exchanges.
Eric Balchunas, Senior ETF Analyst for Bloomberg, reported that $BITO, the Bitcoin ETF, experienced its largest weekly inflow in a year, accompanied by a substantial trading volume of half a billion shares on Friday.
Bitcoin price at the press time is $31,083.98 USD with a 24-hour trading volume of $17,894,465,058 USD. Bitcoin is up 1.16% in the last 24 hours
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