Bitcoin’s Supply on Exchanges Hits 5-Year Low as Demand Soars
Bitcoin’s percentage supply on exchanges has decreased to 11.7%, the lowest level in the previous five years, marking a significant shift in the crypto market. In view of the increasing demand for Bitcoin, the reported purchase of 910,000 by around 1.84 million wallet addresses is a sizeable amount.
Possible causes for the deduction of BTC on exchanges include BlackRock’s filing of a spot Bitcoin ETF application and the debut of the EDX Markets crypto exchange. These alterations have rekindled interest among large financial organizations in Bitcoin, with some even contemplating resubmitting their ETF applications to the US Securities and Exchange Commission (SEC).
Awaiting SEC Response
If the SEC approves, traders and investors may derive more financial benefit from Bitcoin price fluctuations by using leverage. The emergence of this kind of financial instrument is likely responsible in significant part for Bitcoin’s sustained position above the $30,000 mark. It can even go all the way up to $35k level if Bitcoin ETF gets approval from the SEC.
As 910,000 Bitcoins were moved to wallet addresses rather than exchanges, the fraction of Bitcoins accessible on exchanges decreased.
According to the latest market data compiled by K33 Research, Bitcoin gained 30% and made up 50% of total trading activity during U.S. market hours. Demand for Bitcoin far outpaced supply as its price rose during U.S. trading hours.
Handpicked News: SEC Comments Negatively on Spot Bitcoin ETF Registrations
Bloomberg Senior ETF Analyst Eric Balchunas reported record trading volume of 500 million shares on Friday for the Bitcoin exchange-traded fund (ETF) $BITO, which had its strongest weekly inflow in a year. CMC reports that the current price of Bitcoin is $30,425, reflecting a loss of 0.57 percent over the last 24 hours.