• 1 million BTC has been withdrawn from exchanges since March 2020 peak.
• If the same rate continues, exchanges could run out of Bitcoin by 2025 or 2026.
• An increase in deposits on exchanges shows that investors are looking to sell and this could affect Bitcoin’s price in the coming months.
Bitcoin Withdrawn From Exchanges
A large amount of bitcoin, 1 million to be exact, has been withdrawn from exchanges since its March 2020 peak according to data from Glassnode. This is 11.7% of the circulating supply and if this rate continues, exchanges will run out of Bitcoin by 2025 or 2026.
Supply Outside Exchanges Increasing
The supply outside exchanges has been rising and recently hit an all-time high of 18.12 million BTC which is more than 14 times the supply in exchanges. This dynamic could positively affect its price in the coming months as an increase in deposits on exchange shows that investors are looking to sell which would lead to a bearish impulse for BTC’s price.
Attempt To Go Above Resistance Zone
Bitcoin attempted to go above the $23,500 resistance zone however it was met with bearish momentum and went below $22,800 level and 100-hour simple moving average. At present BTC is trading below $23,000 and faces major resistance near $23,000 zone as well as 100 hourly simple moving average.
24 Hour Price Drop
Currently BTC is down 2% over 24 hours and 5% over 7 days duration showing short term bearishness however long term bulls remain intact due to increasing supply outside exchanges potentially leading to bullish impulses for prices going forward.
Conclusion
In conclusion it can be seen that large amounts of bitcoins have been withdrawn from exchanges since March 2020 peak leading experts to believe that these supplies may run out by 2025 or 2026 unless new reserves come in swiftly whereas increasing supply outside exchange means long term bulls remain intact potentially leading to bullish impulses for prices going forward .