Bitcoin Supply Shock: Exchange Reserves Fall Below 15%

Edited by: Elena Weismann

As of today, Bitcoin exchange reserves have plummeted below 15%, signaling a potential supply shock driven by surging institutional demand, particularly from exchange-traded funds (ETFs). This decline, with the percentage of Bitcoin supply on exchanges now at 14.5%, is the lowest since August 2018. (Source: Glassnode data)

This trend suggests a possible price rally as strong buyer demand clashes with a dwindling supply of Bitcoin. The decrease in available Bitcoin on exchanges often indicates growing investor confidence and a shift towards long-term holding, with coins moving to cold storage or self-custody wallets. (Source: Glassnode data)

Over-the-counter (OTC) desks are also experiencing a supply squeeze. The cumulative balance of Bitcoin held in known OTC addresses is at historic lows. CryptoQuant data reveals a 21% decline in OTC address balances tied to miners since January, now at an all-time low of 155,472 BTC. (Source: CryptoQuant)

Bitcoin has maintained its position above the critical $100,000 psychological support level, a threshold it has held since May 28, despite a 2.85% loss over the last two days. This resilience is supported by robust institutional demand and a shrinking supply. (Source: Focusw3b Agency)

Spot Bitcoin ETFs have seen 15 consecutive days of inflows. Starting on June 9, these inflows totaled over $386 million and continued through Monday, with an additional $102 million. Over the past 15 days, spot Bitcoin ETFs have attracted over $4.7 billion in capital. (Source: SoSoValue)

Sources

  • Cointelegraph

  • Reuters

  • Reuters

  • Reuters

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