Since the crash on the crypto market in May, Bitcoin exchange stocks have increased significantly. Gradually, however, the supply-demand gap is shifting again in favor of the bulls.
Sales across the board continue to send the crypto market on the hunt for the bottom. With a minus of 4.4 percent, the total market capitalization melts to 1.34 trillion US dollars and thus about half of the record level set two months ago of 2.55 trillion US dollars. Bitcoin is meanwhile slipping further and further towards the 30,000 mark. The key crypto currency drops by around four percentage points on a daily basis and is thus listed at 32,038 US dollars at the time of going to press. On a weekly basis, the BTC price struggles with a price discount of 6.2 percent.
Ethereum has not yet recovered from falling below the 2,000 mark in trading yesterday. The second largest cryptocurrency has plummeted 6.5 percent to $ 1,899 in the past 24 hours. In a weekly comparison, the ether price has fallen by 18 percent.
The remaining coins of the ten most valuable crypto assets are also dropping feathers. Binance Coin (BNB) falls by six, Cardano (ADA) by around seven percent. XRP caught it with a minus of five percent, while the bottom two Dogecoin (DOGE) and Polkadot (DOT) yielded even more clearly with losses of between six and nine percent.
Bitcoin reserves are falling
One of the dominant topics in the bull cycle was the steadily declining Bitcoin stock on the stock exchanges, which was particularly indicative of the accumulation trend among institutional investors. The calculation behind this is very simple: if stocks become scarce, the price rises in direct correlation. However, the supply-demand gap suddenly shifted in mid-May, when massive sales filled up the stock exchange coffers and thus pushed the BTC rate down significantly.
After the heavy sell-off, however, the Hodl mood seems to be gradually picking up again. According to Glass node Exchange outflows have increased visibly “at a rate of ~ 2k BTC per day” over the past two weeks. In other words: Bitcoin demand is rising again. The total balance has fallen by 40,000 BTC in the past three weeks, which corresponds to “about 28 percent of the total inflow of 140k BTC since the local low in April”. The stock market is currently at just under 2.56 million Bitcoin.
The trend coincides with the current spending behavior of miners. After they eased their wallets by almost 5,000 BTC at the beginning of June, the miners’ BTC reserves seem loud Cryptoquant “To be back in growth mode”. A positive indicator which, according to the on-chain analysts, suggests “that miners assume that Bitcoin will reach higher prices in the medium term and that the bull market is not over”.
Also data from crypto forensic scientists from Chainalysis prove that the inflows on the stock exchanges are gradually stalling. Since the end of June, the “inflows to exchanges” have fallen from over 100,000 BTC to currently just over 40,000 BTC.
It remains to be seen whether a long-term trend reversal is currently underway. But if the tendency of falling inflows to trading venues with simultaneously increased outflows from the stock exchanges continues, Bitcoin should continue to make up ground.