English | Español | Français
Market Cap: $ 3.41 T 24h Vol: $ 92.84 B BTC Share: 61.03%
BTCNEWS
  • Bitcoin
  • ETF
  • Prices
  • Exchanges
  • Glossary
bitcoinBTC/USD
$ 104,760.07 1.15%
No Result
View All Result
BTCNEWS
  • Bitcoin
  • ETF
  • Prices
  • Exchanges
  • Glossary
BTCNEWS
No Result
View All Result
Home Latest

Facing Bitcoin’s Potential Supply Shortage: What it Means for You

Examining the Impact of U.S Bitcoin ETFs Approaching 6% Market Capitalization

Mark Valerius by Mark Valerius
December 14, 2024
Share on FacebookShare on Twitter

Key Points

  • Bitcoin’s spot exchange reserves have reached a seven-year low, hinting at a potential supply squeeze.
  • Rising institutional demand for Bitcoin could further exacerbate the supply-demand imbalance.

Bitcoin (BTC) has been trading at $101,718, marking a 1.6% increase in 24 hours. The cryptocurrency maintains its dominance in the market with a market capitalization exceeding $2 trillion.

The recent gains have been accompanied by a surge in demand for BTC. This, coupled with a decreasing supply, has created a market imbalance. If these trends continue, Bitcoin could potentially face a supply squeeze that could drive its price even higher.

Bitcoin Spot Exchange Reserves at a Seven-Year Low

CryptoQuant data has revealed a decrease in Bitcoin’s supply as spot exchange reserves have reached their lowest level since mid-2018. Currently, the Bitcoin held on spot exchanges amounts to 1,055,716 BTC.

The reserves have seen a sharp decline over the past month, coinciding with Bitcoin’s rally past $100,000 to new all-time highs.

10X Research indicates that Coinbase, which holds the highest Bitcoin reserves, has seen 72,000 BTC in outflows in the past 30 days. This represents nearly 10% of the exchange’s Bitcoin balance. Binance and Kraken have also seen significant outflows.

The data for the past 30 days reveals that Bitcoin has recorded 22 days of negative netflows from spot exchanges. This suggests that traders are not eager to sell, instead opting to hold onto their Bitcoin.

Increasing Institutional Demand

The reluctance to sell is being met with increased institutional demand, as evidenced by inflows to spot Bitcoin exchange-traded funds (ETFs).

SoSoValue data shows that total inflows to spot Bitcoin ETFs in the past three weeks have exceeded $5 billion. These assets are nearing 6% of Bitcoin’s total market capitalization.

If these inflows continue, they could trigger an additional supply squeeze on Bitcoin, potentially pushing the price even higher.

Long-term Bitcoin holders are known to sell when the market hits a local top. The Binary Coin Days Destroyed (CDD) indicates that long-term holders may still be taking profits. If this cohort continues to sell, it could potentially avoid a supply squeeze if the sold coins are sufficient to absorb the buy-side pressure.

Tags: Bitcoin (BTC)

Related News

australia crypto atms

Australia Sets $5,000 Transaction Cap On Crypto ATMs As Scams Worsen

June 4, 2025
dubai ripple

Ripple’s RLUSD Wins Dubai Regulatory Approval – Details

June 4, 2025
moscow crypto russia

Russia Embraces Crypto Innovation As Sberbank Offers Bitcoin-Linked Bonds

June 4, 2025
south korea crypto

South Korea Breaks Crypto Ice: First Institutional Sale Ushers In New Era

June 3, 2025
bitcoin
Bitcoin (BTC)
Rank: 1
$ 104,760.07
Price (BTC)
Ƀ1.00000000
Marketcap
$ 2.08 T
Volume
$ 26.54 B
24h Change
1.15%
Total Supply
19.87 M BTC

  • About Us
  • Contact
  • Advertise
X-twitter Telegram Facebook Instagram Youtube Medium Linkedin

Information you can trust

BTCNews.com provides Bitcoin news and other cryptocurrency news, reaching millions of crypto enthusiasts daily.

It offers comprehensive coverage of business, financial, and international news related to digital assets.

Serving professionals through digital platforms, industry conferences, and direct updates, BTCNews.com is a premier provider of blockchain and crypto news.

Disclaimer: The information provided by BTCNews.com is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency investments are highly volatile and involve significant risks.

Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. BTCNews.com is not responsible for any losses incurred due to the use of information provided on this site.

  • © 2008 - 2024 BTCNews.com
  • Terms of Use
  • Privacy
  • Cookies
No Result
View All Result
  • Market
    • Crypto Prices
    • Crypto Exchanges
  • Learn
    • Glossary
  • News
    • Latest

© 2008 - 2024 BTCNews.com