The amount of available Bitcoin (BTC) on crypto exchanges is about to hit a record low, which indicates a shortage of the market-leading cryptocurrency.
Ki Young Ju, the CEO of analytics service CryptoQuant, shows accordingly points out that the tradable BTC are currently as rare as in May.
Is there a shortage again?
As the data from Thursday show, “only” 2.399 million BTC are available on all major crypto exchanges combined. In May, a record low of 2.390 million BTC was recorded in this regard, which is now very close again.
So crypto investors are currently not paying Bitcoin to trading platforms, which suggests that the strategy has shifted back to long-term investment rather than short-term speculation.
“I hope that we will get a shortage of supply again,” as Ki comments.
Such a “supply squeeze” has been a recurring narrative in the last few weeks, which is fueled by the fact that any excess liquidity is immediately bought up again.
It is not only private investors who are turning back to holding, but also institutional investors, which can be seen from the fact that there are also massive capital outflows on trading platforms for crypto derivatives.
the data of the crypto market research institute Glassnode also show that the Bitcoin that was last moved in the last 1 to 2 years reached a three-year low on Friday today.
This supports the thesis of scarcity, because investors who last transferred their BTC in September 2019 or September 2020 are still holding on to their funds.
Bitcoin has strong support
BTC / USD is still below the $ 46,000 mark at press time. The dwindling supply does not yet have an immediate effect on the price.
Cointelegraph expert Michaël van de Poppe nonetheless contradicts the prophecies of doom that Bitcoin slipped into a new downward trend with the crash on Tuesday.
He sees support for the crypto market leader at 45,700 US dollars and at the latest in the range between 43,000 and 44,000 US dollars.
“On the upside, the $ 46,700 mark is again an important resistance,” said the expert. And further:
“If we can skip this, the chances are that we will get back over $ 47,500 and even $ 50,000. The altcoins would also be fueled by this and could probably follow suit. “