Bitcoin exchange supply hits a 6 month low as accumulation continues


The amount of Bitcoin (BTC) held on the exchanges has been steadily declining since mid-May, providing reassurance that the market’s worst sell-off is over.

At the current level, the Bitcoin exchange offer is at its lowest level since the beginning of January, according to the cryptanalysis company Santiment. “The 6-month low is a promising sign as it generally suggests the risk of further major BTC sell-offs is lower,” the analyst tweeted Monday morning.

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Exchange inflows began to surge in early May, which likely served as a precursor to Bitcoin’s steep sell-off through the middle of the month. The bitcoin sell-off intensified on May 19, culminating in a $ 1.2 trillion decline for the overall cryptocurrency market.

Stock market flow data is an important key figure for the short to medium-term monitoring of the price trend of Bitcoin. Net inflows often predict a large sell-off as more investors move their holdings from cold wallets, possibly for sale purposes. Case in point: In May, Bitcoin saw the largest foreign exchange inflows since the COVID-19 crash in March 2020.

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While Bitcoin is in a firm mid-downtrend, investors are finding more reasons to be bullish. The pace of adoption in countries such as Latin America, an expected shift in mining from China to other regions, and mounting signs that the market has bottomed out give grounds for optimism.

On the flip side, analysts continue to warn of an uncertain short-term outlook, with several prominent industry voices calling for a steeper correction this year.