As notable developments occur in the crypto market, important data continues to emerge. According to this data, the amount of Bitcoin stored in crypto exchanges has reached a new supply low, which could be the factor needed for Bitcoin to successfully retest and properly return above $60,000.
What’s Happening on the Bitcoin Front?
CryptoQuant contributor Gaah explained in an analyst note dated August 29 that Bitcoin reserves in exchanges have reached new lows for the year. If demand continues to increase, this could indicate decreasing selling pressure that potentially supports a bull market.
According to CryptoQuant data, Bitcoin reserves in exchanges have decreased by approximately 12.9% since January 1, leaving a total of 2.62 million Bitcoin across all major crypto exchanges. Gaah reiterated that the transfer of Bitcoin to cold wallets generally indicates that investors are determined to hold the asset long-term and are optimistic about its price potential.
The decrease in Bitcoin supply in exchanges follows analysts’ recent suggestions that Bitcoin’s price will recover in the fourth quarter of 2024. Meanwhile, Gaah added that the increase in long-term Bitcoin holders would lead to a more resilient market, less prone to large panic sales:
“With less Bitcoin in exchanges, there is less liquidity for immediate sale.”
Details on the Subject
Popular crypto investor MartyParty commented in an August 27 X post, saying something is happening with very low Bitcoin reserves. The notable crypto commentator Bitcoin for Freedom, who has 74,800 X followers, stated that a supply shock is coming soon because this is not sustainable, noting that a total of 56,000 Bitcoin has been moved from crypto exchanges since August 22 in the last seven days.
At the time of writing, Bitcoin is trading at $58,970 according to CoinMarketCap data and has just retested the significant $60,000 level a few hours ago. Recently, it was revealed that long-term Bitcoin holders have spent over $10 billion to purchase the asset and have refrained from selling since the price dropped from $69,000.
