Bitcoin Supply on Exchanges Hits Record Low – Bullish Signal for the King of Crypto?
Exchanges are running dry. Bitcoin’s available supply just plunged to multi-year lows—while the network clocks another milestone. Hodlers aren’t selling. Are we staring at the next supply shock?
The Great Bitcoin Exodus
Whales and retail investors alike are yanking BTC off trading platforms faster than a DeFi rug pull. The trend’s been building for months, but today’s data shows exchange reserves bleeding out like a stuck pig. Fewer coins up for grabs means one thing: buy pressure could send prices ballistic.
Miners vs. The Moon
Even with Bitcoin’s hash rate smashing records (again), miners aren’t dumping stacks like they used to. Either they’re betting on higher prices—or they’ve finally learned not to sell before Wall Street’s algos front-run them. How very un-crypto of them.
The Cynic’s Corner
Sure, dwindling exchange supply looks bullish—until some over-leveraged hedge fund starts liquidating OTC holdings to cover their yacht payments. But for now? The numbers don’t lie. This is what diamond hands look like.
A Muted Bitcoin Exchange Balance
Bitcoin investors and traders are demonstrating positive behavior in spite of its notable rally. Santiment, a market intelligence and on-chain data platform, reported the positive action of investors after investigating the number of BTC supply on crypto exchanges.
The on-chain platform stated that Bitcoin has surged to a market value of $113,923, marking yet another historic all-time high during the time of the post. Despite the fact that the Bitcoin price has increased by +13.6% from its local bottom on June 22nd, Santiment highlighted that traders are not demonstrating a strong desire to return coins to exchanges for possible sale.
Investors are happy to keep their bitcoin hidden away in cold storage or personal wallets rather than swarming to crypto exchanges to cash in on gains. According to the platform, this behavior is seen as a long-term trend among known exchange wallet addresses.
This action from exchange investors reiterates the story of strong holder belief. Thus far, this trend could be considered an encouraging signal to market watchers and traders, as selling pressure is still at bay.
Data from Santiment reveals that there has been a net decrease of 315,830 BTC on crypto exchanges over the past four months, representing an over 21% drop. It is important to note that the decline has been more pronounced, with a -61% drop when looking back five years, to July 2020, when 1.88 million BTC left exchanges.
In conclusion, Santiment noted that the overall trend is quite bullish. “Overall, the trend of coins staying off exchanges is a sign that the threat of sudden market plummets is more limited,” the platform stated. Furthermore, Santiment claims that long-term investors are becoming more satisfied with storing their coins safely in their storage.
Investors Are Aggressively Buying BTC
During this bullish period, Bitcoin’s Spot Cumulative Volume Delta (CVD) has been trending downwards for several consecutive weeks. Popular on-chain analytics platform Glassnode revealed the persistent downtrend of the key metric, with the most recent buy-side increase occurring on Wednesday.
However, the platform claims that future CVD is more reactive, exhibiting an upward trend and strong buying interest. Since the all-time high tap, the chart shows that spot sold off while futures bought. Also, the funding is still modest, even momentarily negative.
The development implies that the BTC’s ongoing surge is being driven by Leveraged rather than spot demand. Although spot markets are not providing much confirmation, Glassnode asserted that futures traders are leaning in. In the meantime, the low funding indicates that positioning isn’t congested yet, which Glassnode considers a structurally precarious setup unless spot interest returns.
