Bullish Signal Exchange BTC Reserves Hit a ThreeYear Low Bitcoin Supply Continues to Tighten

CryptoQuant data shows that the exchange balance of Bitcoin has dropped to the lowest point in three years, indicating that the selling pressure of BTC may be reduced. In addition, as institutional investors continue to accumulate BTC through Bitcoin ETF, this may further bring potential supply shocks to Bitcoin, driving prices higher.
(Bitcoin continues to be at 65,000 yuan》Bernstein: Institutional Investment Wave Breaks Out in the Second Half of the Year, Currently Low in BTC Distribution)
(Background supplement:
Bitcoin keeps falling, who is selling BTC?)
Bitcoin has continued to fluctuate and fall recently, currently holding steady at the $65,000 mark, with a 4.7% decline in the past week. However, data shows that the recent Bitcoin balance of exchanges has reached a three-year low, indicating a shift in investor sentiment (transferring Bitcoin to cold wallets for safekeeping), and the selling pressure of BTC may be alleviated.
According to data from CryptoQuant as of June 19th, the exchange balance of Bitcoin (the total amount of Bitcoin available at exchanges) is now at 2,825,703 Bitcoins, reaching the lowest point in three years. During the period in January of this year, the Bitcoin exchange balance hovered around 3,039,000.
From the chart below, it can also be seen that when the exchange BTC balance experienced a significant decline, the price rebounded shortly after. However, the main difference now compared to the past is the launch of the US spot ETF, so the reference value may also change.


Source: CryptQuant
Bitcoin Spot ETF Drives BTC Supply Shock
According to the June 17th Coinshares weekly fund flow report, Bitcoin investment tools hold nearly $73 billion in Bitcoin globally. However, the same report also shows that as of the week ending June 15, 2024, the weekly outflow of Bitcoin investment tools was $621 million, the largest capital outflow since the week ending March 22, 2024.
Coinshares’ analysis pointed out that the Federal Reserve’s “more hawkish than expected” remarks imply that the Fed will maintain higher interest rates for a longer time, leading to capital outflows from fixed supply assets such as Bitcoin.
However, experts such as Franklin Templeton CEO Jenny Johnson believe that institutional adoption of Bitcoin has not yet fully unfolded. In an interview with CNBC, she said, “These are indeed the first wave early adopters, and I think the next wave will be larger institutional entry.”
If her prediction comes true, institutional capital will continue to flow into Bitcoin. In addition, the halving completed in April of this year further limited the supply of Bitcoin, which may provide momentum for BTC to rise.


Related reports
JPMorgan Chase: Total Market Value of US Mining Companies Hits Record High, But Why Are Miners Still Dumping Bitcoin?
Bitcoin Funding Rate Declines but “Position Remains High”, Matrixport: BTC Expected to Reach New Highs After Brief Decline
May Retail Data in the US “Below Expectations” Strengthens Fed Rate Cuts Possible, Bitcoin Rebounds After Dipping to $64,000