bitcoin

Bitcoin Exchange Reserves Hit Three-Year Low, Indicating Potential Supply Shocks and Increased Institutional Interest

The Big Whale

20 Jun 2024 — 1 min read

Bitcoin exchange reserve hits 3-year low with 2,825,703 BTC left on exchanges.
Low exchange reserves indicate low selling pressure and potential supply shocks.
BlackRock's Bitcoin ETF holds 274,000 BTC, contributing to supply pressure.
$73 billion in Bitcoin held by investment vehicles globally, with $2 billion monthly inflows.
Bitcoin investment vehicles saw $621 million in weekly outflows due to Fed comments.
Institutional adoption of Bitcoin expected to increase, putting pressure on exchange supply.

Summary :
The Bitcoin exchange reserve, which is the total amount of Bitcoin available on exchanges, has reached a three-year low. According to data from June 19, 2024, there are currently 2,825,703 Bitcoin left on exchanges, compared to around 3,039,000 in January 2024. This decrease in exchange reserves indicates low selling pressure and the potential for supply shocks due to the limited supply available for purchase. The approval of Bitcoin ETFs in the United States earlier this year has added pressure on Bitcoin's supply, with asset managers like BlackRock accumulating significant amounts of Bitcoin. In May 2024, monthly inflows into digital asset funds reached $2 billion, driven by investments in Bitcoin. However, a recent report showed that Bitcoin investment vehicles recorded significant outflows for the week of June 15, 2024, possibly due to "more hawkish-than-expected" comments from the Federal Reserve. Despite this, industry experts believe that institutional adoption of Bitcoin is still in its early stages, and more institutional capital is expected to flow into Bitcoin in the future. Additionally, Bitcoin's supply is further constrained by the decrease in block mining rewards following the April 2024 halving event. Miners now receive 3.125 Bitcoin for successfully mining a block, compared to 6.25 Bitcoin before the halving. Overall, the low exchange reserves, increased institutional interest, and supply constraints are factors contributing to the current state of the Bitcoin market.

Sources :

- CoinTelegraph

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