Bitcoin exchange reserves drop to a seven-year low, signaling a potential supply shock as institutional buying from ETFs continues.
Key takeaways:
Bitcoin’s percent supply on exchanges has dropped below 15% for the first time since 2018.
Depleting exchange supply and OTC balances, pointing to “supply shock” and long-term accumulation.BTC price must remain above $100,000 to secure the upside.
Bitcoin exchange reserves have fallen below 15%, suggesting a supply shock as institutional demand from exchange-traded funds (ETFs) grows.
Percentage of BTC on exchanges drops to seven-year lows Bitcoin $BTC $107,307 percent supply on exchanges has dropped to near seven-year lows, falling to 14.5% for the first time since August 2018, Glassnode data shows.
Diminishing Bitcoin supply on exchanges may signal an incoming price rally fueled by a “supply shock,” which occurs when strong buyer demand meets decreasing available BTC.
Related: Bitcoin hashrate down 15%, 26 firms add BTC to balance sheets: June in charts
This trend usually signals rising investor confidence and a shift toward long-term holding. For example, BTC is typically transferred to cold storage or self-custody wallets, reducing the liquid supply available for trading.
Whales often withdraw BTC after buying, signalling ongoing accumulation. With fewer coins available for sale, short-term sell pressure diminishes. #TrumpVsMusk #REX-OSPREYSolanaETF #DYMBinanceHODL #NODEBinanceTGE #BTC110KToday? $BNB $ETH
