CryptoQuant: Bitcoin balance on exchanges hits 3-year low, supply continues to tighten! Is it a rising signal?

Bitcoin has continued to fluctuate and fall recently. As of this writing, it is continuing to hold the 65,000USD mark, falling 4.7% in the past week. However, data shows that the Bitcoin balance on exchanges recently hit a new low in three years, which may mean that investor sentiment has turned bullish (bitcoins are transferred out to cold wallets for storage), and the selling pressure on BTC may be alleviated. According to CryptoQuant’s data as of June 19, Bitcoin’s exchange balance (the total amount of Bitcoins available on exchanges) still has 2,825,703 Bitcoins left, down. To the lowest point in three years. During January this year, the balance of Bitcoin exchanges hovered around 3,039,000. As can also be seen from the figure below, when the BTC balance of the exchange experienced a significant decline, the price turned upward on many occasions shortly afterwards. However, the biggest difference between the current situation and history is the launch of US spot ETFs, so the reference value may also change.

Bitcoin

Spot ETFs drive BTCsupply shockAccording to the June 17 Coinshares Weekly Fund Flow Report, the Bitcoin

investment vehicle holds nearly $73 billion in Bitcoin globally. However, the same report also revealed that weekly outflows from the Bitcoin investment vehicle were $621 million in the week ending June 15, 2024, the largest amount since the week ending March 22, 2024 outflow. Coinshares analysis pointed out that the Federal Reserve's "more hawkish than expected" remarks imply that the Federal Reserve will maintain high interest rates for a longer period of time, leading to capital flight from fixed supply assets such as

Bitcoin

. However, experts such as Franklin CEO Jenny Johnson believe that institutional adoption of Bitcoin has not yet fully launched. She said in an interview with CNBC: "This is really the first wave of early adopters, and I think the next wave is larger institutional entry. "If her prediction comes true, institutional capital will continue to flow into

Bitcoin

. In addition, the halving completed in April this year further limits the supply of Bitcoin, which may provide a boost to the rise of BTC. .

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