The total supply of Bitcoin (BTC) held on centralized cryptocurrency exchanges has reached a six-year low, according to data from CryptoQuant. This decrease in supply is seen as a bullish sign because long-term holders tend to buy BTC from exchanges and withdraw it to hold for the long term.
On the other hand, investors with shorter time horizons deposit their funds on exchanges for trading or selling purposes. The declining BTC supply on exchanges has had a significant impact on the cryptocurrency‘s fluctuations, availability, and overall market behavior. Additionally, BTC deposit transactions to exchanges have reached their lowest levels in years, indicating reduced selling pressure.
This decrease in supply comes after Bitcoin’s price surpassed the $40,000 mark for the first time since May 2022. The price rise has been fueled by expectations of a spot Bitcoin exchange-traded fund (ETF) being approved in the United States, which would potentially attract more investors.
Some analysts have made bullish price predictions, including Willy Woo, an on-chain analyst who predicted a potential retest of the $39,900 zone before the continuation of the bullish trend.
Standard Chartered, a multinational banking and financial services firm, has suggested that the price of BTC could surge to $120,000 by the end of next year, after predicting a rise to $50,000 this year.
Source: CRYPTOGLOBE
