English | Español | Français
Market Cap: $ 3.37 T 24h Vol: $ 156.86 B BTC Share: 62.18%
BTCNEWS
  • Bitcoin
  • ETF
  • Prices
  • Exchanges
  • Glossary
bitcoinBTC/USD
$ 105,303.21 3.71%
No Result
View All Result
BTCNEWS
  • Bitcoin
  • ETF
  • Prices
  • Exchanges
  • Glossary
BTCNEWS
No Result
View All Result
Home Latest

Potential Bitcoin Supply Squeeze As 4.85M BTC Exits Exchanges

Evaluating the Implications of a Potential Uptrend Driven by Short and Long-Term Accumulation Trends in Bitcoin Market

Mark Valerius by Mark Valerius
January 29, 2025
Share on FacebookShare on Twitter

Key Points

  • Nearly 5M Bitcoin (BTC) has left exchanges since 2020, indicating a strong accumulation trend.
  • Decreased selling pressure on exchanges could potentially trigger a significant price rally for Bitcoin.

Bitcoin Accumulation Trend

Bitcoin (BTC) is currently experiencing a strong accumulation trend, despite the price volatility between $91k-$105k. According to Joao Wedson, founder of Alphractal, a crypto analytics firm, nearly 5M BTC has been withdrawn from exchanges since 2020. This suggests that investors are opting for a holding strategy. He stated, “4.85M BTC have left Exchanges since February 2020! The Exchange Flux Balance shows a massive shift. Since 2020, the game has changed—everyone wants Bitcoin at all costs.”

Potential Price Rally

The significant outflows from exchanges imply a decrease in the number of BTC available for sale on centralized exchanges. This supply squeeze coupled with low selling pressure could potentially instigate a significant price rally for Bitcoin. IntoTheBlock, a blockchain analytics firm, observed that exchange flows have been negative for the past seven trading days, indicating ongoing accumulation.

During the same period, the cryptocurrency’s value dropped by over 7%, falling from $109k to $97k, before bouncing back to $100k. This suggests that the price dip was marked by strong bids capitalizing on the lower prices.

CryptoQuant noted a similar decrease in selling pressure on Binance, with the taker sell volume dropping significantly over the past week, suggesting short-term weakness among short-sellers. The analysis read, “As the influence of sellers diminishes, buyers may step in, potentially leading to a new upward wave.”

These factors combined suggest that a significant price rally could be imminent. The upcoming Federal Reserve rate decision could provide further insight into these expectations. However, BitMEX co-founder Arthur Hayes predicts a potential 30% drop to $70k-$75k in the near term, followed by a rally to $250k by year-end.

Tags: Bitcoin (BTC)

Related News

spain crypto

Major Spanish Bank Recommends 7% Crypto Investment For Wealthy Clients

June 18, 2025
bitcoin debate

Core Developers Are ‘Risk To Bitcoin’ In Governance Battle, Says JAN3 CEO Samson Mow

June 10, 2025
Interview with 0G Labs’ Michael Heinrich on The Convergence of AI and web3

Interview with 0G Labs’ Michael Heinrich on The Convergence of AI and web3

June 10, 2025
market libra

Argentine President Cleared Of Ethics Violations In $4.5 Billion LIBRA Crash

June 10, 2025
bitcoin
Bitcoin (BTC)
Rank: 1
$ 105,303.21
Price (BTC)
Ƀ1.00000000
Marketcap
$ 2.09 T
Volume
$ 52.71 B
24h Change
3.71%
Total Supply
19.88 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