Bitcoin Borsa Rezervleri Reached The Lowest Level In The Past Three Years.

The decrease in BTC supply on exchanges could lead to a new supply shock.

As of June 19, 2024, the supply of Bitcoin on exchanges has dropped to its lowest level in the past 3 years.

According to CryptoQuant data, there are currently 2,825,703 Bitcoin (BTC) held on exchanges. In January 2024, the Bitcoin exchange balance was approximately around 3,039,000.

The decrease in exchange reserves, indicating low selling pressure and relatively limited supply available for purchase, suggests a potential supply shock.

Bitcoin ETFs and Market Pressures

The approval of Bitcoin ETFs in the United States in January 2024 added additional pressure on the supply of Bitcoin. Particularly, major asset managers like BlackRock increased this pressure by accumulating Bitcoin. As of June 6, BlackRock's iShares Bitcoin Trust (IBIT) held approximately 274,000 Bitcoins, making it one of the 11 Bitcoin ETFs traded in the US.

Entries and Exits in Digital Asset Funds

In May 2024, monthly inflows into digital asset funds reached $2 billion, driven significantly by investments into Bitcoin investment funds and products. According to the Coinshares Weekly Fund Flows report dated June 17, digital asset funds worldwide hold around $73 billion in Bitcoin. However, the report also noted a weekly outflow of $621 million from Bitcoin investment products in the week ending June 15, 2024, marking the largest outflow since the week of March 22, 2024.

Market Reactions and Institutional Interest

Coinshares mentioned that "more hawkish than expected" comments from the Federal Reserve about keeping interest rates high have led to capital outflows from fixed-supply assets like Bitcoin. Despite increased institutional interest, industry experts believe that institutional adoption is not yet in full swing. Jenny Johnson, CEO of Franklin Templeton, said in an interview with CNBC:

"This is really the first wave of early adopters and I think the next wave will be much larger institutions."

According to Johnson's forecast, institutional capital will continue to flow into Bitcoin.

Bitcoin Halving Effect

Additionally, the halving event in April 2024, which reduced block mining rewards, further restricted Bitcoin supply. Prior to the latest halving, miners received 6.25 Bitcoins for successfully mining each block, which halved to 3.125 Bitcoins afterward. This reduction could create upward pressure on prices by limiting Bitcoin's supply.

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