Bitcoin exchange balances drop to a 7-year low at 14.5% as long-term holders shift funds to cold storage amid growing market optimism.
BTC dominance rises in June as institutions increasingly favor Bitcoin over altcoins, reinforcing its role as a digital store of value.
Institutional demand, reduced supply, and market dominance signal Bitcoin’s setup for one of the strongest breakouts in crypto history.
Crypto trader MichaelXBT warns that Bitcoin's prolonged sideways movement is designed to shake out weak hands. According to him, this tactic often precedes massive rallies. He predicts one of the largest bullish breakouts in crypto history. His caution comes as on-chain data aligns with bullish market behavior.
Bitcoin held on exchanges has plunged to just 14.5%, the lowest since August 2018. This sharp drop points to rising long-term confidence. ChristiaanDefi highlights that exchange balances have shown volatility over the past six years. However, the current pattern stands out for its consistent downtrend.
Source: ChristiaanDefi
In 2019, exchange balances hovered around 15% when Bitcoin traded near $3,500. By early 2020, this figure rose to 18%. The March 2020 crash saw another spike, as panic-selling pushed balances even higher. However, that quickly changed as the bull market picked up.
Accumulation Behavior Confirms Market Shift
From late 2020 through 2021, investors withdrew Bitcoin to cold wallets. Prices surged from $10,000 to over $60,000 during that time. Balances thus fell to about 16.5%. Despite the FTX failure and mounting uncertainty, the pattern persisted in 2022.
Furthermore, due to institutional demand and better custody options, withdrawals continued in 2023 and 2024. Over $100,000, the price of Bitcoin reached fresh all-time highs.This outflow marks a shift toward accumulation and reduced sell pressure. Lower exchange balances signal increased scarcity and long-term holding behavior.
Bitcoin Dominance Signals Institutional Confidence
Besides the dwindling exchange supply, Bitcoin's market dominance is rising. According to Axel Adler Jr., BTC dominance grew by 1% in June, reaching a cycle high. This shows that institutions are favoring Bitcoin over altcoins, viewing it as a stable store of value.
Source: Axel Adler Jr.
In contrast, retail investors largely drive the altcoin market. Since the last altseason, Bitcoin has reclaimed most of its lost dominance. Unlike previous cycles, investors can now gain Bitcoin exposure through ETFs, equities, and public firms like MicroStrategy and Metaplanet.
The post Sideways Now, Skyrocket Later: Bitcoin Primed for Explosive Move as Supply Tightens appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
