Cointelegraph Team
Cointelegraph
The amount of Bitcoin stored on crypto exchanges has reached a new supply low, which may be the catalyst that Bitcoin needs to successfully retest and move back above $60,000.
“With Bitcoin reserves on exchanges hitting new lows for the year, this could indicate reduced selling pressure, potentially favoring a bull market if demand also continues to grow,” CryptoQuant contributor Gaah highlighted in an Aug. 29 analyst note.
The year-to-date high for Bitcoin supply on exchanges was just over 3.05 million. Source: CryptoQuant
According to CryptoQuant data, Bitcoin (BTC $59,321) reserves on exchanges have decreased by approximately 12.9% since Jan. 1, leaving 2.62 million Bitcoin across all major crypto exchanges.
Gaah reiterated that Bitcoin moving to cold wallets “generally indicates” that investors are committed to holding the asset long-term and are optimistic about its price potential.
The declining Bitcoin supply on exchanges follows recent analyst suggestions that history indicates Bitcoin’s price will rally in the fourth quarter of 2024.
Meanwhile, Gaah added that the increase in long-term Bitcoin holders will lead “to a more resilient market, less prone to large panic sales.”
When there is less Bitcoin available on exchanges, there is less liquidity available for immediate sale.
Pseudonymous crypto trader MartyParty commented on the “ultra low” Bitcoin reserves in an Aug. 27 X post by saying that “something is happening.”
“The supply shock will come soon because this is not sustainable,” pseudonymous crypto commentator Bitcoin for Freedom told their 74,800 X followers, noting that the last seven days have seen 56,000 Bitcoin moved off crypto exchanges since Aug. 22.
At the time of publication, Bitcoin traded at $58,970, having retested the $60,000 key level just hours before, according to CoinMarketCap data.
Bitcoin is down 0.30% over the past 24 hours. Source: CoinMarketCap
It was recently revealed that long-term Bitcoin holders have spent over $10 billion to buy the asset and have been pulling back from selling since its price has declined from $69,000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Ethereum has lost its “ultra” sound money status, faces key rectangle resistance hurdle
Ethereum is up 0.5% on Thursday following a recent analysis showing that the top altcoin lost its "ultra" sound money narrative. Meanwhile, ETH ETFs recorded net inflows for the first time after nine days of consecutive outflows.
Solana bears dominate market as SunPump has potentially led to less demand for SOL
Solana is down 2.5% on Thursday following bearish signals across its funding rate and total fees captured. SOL's weak performance could also be linked to the declining traction seen in its meme coin generation platform Pump.fun.
AI tokens see narrow gains as Wall Street banks raise price targets on NVDA
AI tokens NEAR, ICP, RENDER and TAO briefly traded in the green on Thursday following Wall Street banks' positivity toward Nvidia's earnings report. While a correction followed, these tokens could rally if NVDA meets expectations.
XRP back above $0.57 even as Ripple traders take $8 million in profits
Ripple (XRP) traders have consistently taken profits on their holdings in the last two weeks, per Santiment data. Once again, traders have grabbed $8.36 million in profit so far on Thursday. Typically, profit-taking negatively influences the asset as it increases the selling pressure.
Bitcoin: Can BTC break above $62,000 barrier?
Bitcoin (BTC) trades above $60,000 on Friday, gaining more than 4% this week so far, but fluctuating within a range between $57,000 and $62,000 for the last 15 days. On-chain data shows contradicting signs, with institutions accumulating Bitcoin while some whales are selling.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.