Bitcoin Supply On Exchanges Hit 4-Year Low, But Why Is Price Crashing?
20 Marzo 2024 - 2:00PM
NEWSBTC
Certain Bitcoin fundamentals suggest the flagship crypto token is
well primed for further growth in this bull market. However, its
recent price decline has sparked concerns about the reason for this
downward trend despite everything pointing to a sustained upward
movement. Bitcoin Supply On Exchanges Hit 4-Year Low Data
from the on-chain analysis platform CryptoQuant highlighted that
the supply of Bitcoin on exchanges has seen nearly a 40% drop in 4
years and is reducing ahead of the Bitcoin halving. This
underscores the bullish sentiment around the Bitcoin ecosystem as
the decreasing supply on supply suggests that most investors have
no plans to sell their holdings anytime soon. Related
Reading: Is Ripple Behind The XRP Price Crash? Massive Selling
Spree Sparks Concern The CryptoQuant data also noted that Bitcoin’s
demand is outpacing its supply, which is said to have been the
prevailing trend since 2020. This development offers a bullish
narrative as it can continue to increase Bitcoin’s value since
“scarcity boosts perceived value.” This trend is also expected to
be sustained once the Halving occurs since miners’ supply will be
cut in half. Interestingly, the imbalance between Bitcoin’s
demand and supply has led crypto analysts like MacronautBTC to
believe that BTC’s price could rise to as high as $237,000. As
such, there are still high expectations for Bitcoin despite the
crypto token hitting a new all-time high (ATH) of $73,750.
Why Bitcoin’s Price Is Crashing Crypto analyst Alex Kruger has
outlined different reasons why Bitcoin’s price is crashing despite
its strong fundamentals. The first reason he alluded to was the
fact that crypto traders in the derivatives market look to be
overleveraged, possibly because greed seems set to be setting in
with traders deploying more capital in anticipation of further
price surges. Kruger mentioned that the ETH could also be
dragging the market down with the hopes of the SEC (Securities and
Exchange Commission) approving the Spot Ethereum ETFs waning.
Bitcoinist recently reported that the approval odds for these
investment funds have plummeted immensely in the past few months,
dropping to an alarming 35%. Related Reading: Dogecoin Growth
Hits Roadblock As Holder Activity Enters Dreaded Period Of
Stagnancy The third reason that Kruger mentioned is the negative
Bitcoin ETF inflows, which have become a trend lately. Interest in
these Bitcoin funds has cooled off, with investors opting to take
profit instead. On March 19, BitMEX Research revealed that these
ETFs saw a record net outflow of $326m. Crypto trader and
analyst Rekt Capital also suggested that Bitcoin is already in the
‘Final Pre-Halving Retrace.’ Therefore, significant price
corrections can be expected ahead of the Halving event, which is
set to take place in April. At the time of writing, Bitcoin
is trading at around $63,000, down in the last 24 hours, according
to data from CoinMarketCap. BTC rises above $64,000 | Source:
BTCUSD on Tradingview.com Featured image from Financial Commission,
chart from Tradingview.com
Grafico Azioni TRON (COIN:TRXUSD)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni TRON (COIN:TRXUSD)
Storico
Da Apr 2023 a Apr 2024