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Bitcoin Bull Signal Returns: Exchange Supply Hits Lowest Level Since 2017

On-chain data has revealed an increasing sentiment of holding Bitcoin among investors. Bitcoin has been on a roll since the start of the month, pushing its price to new yearly highs. At the same time, exchange data from CryptoQuant reveals that the crypto might be gearing up for a sustained bull run. According to the on-chain analytics platform, Bitcoin’s exchange supply, the amount available for purchase on exchanges, has dropped to its lowest levels since 2017 

Exchange Supply Drops To Lowest Level In Six Years

The Bitcoin market is flashing a bull signal that correlates with anticipation of spot Bitcoin ETF applications. CryptoQuant’s exchange reserve chart demonstrates that the supply of Bitcoin has been steadily decreasing from centralized exchanges since 2020 when it reached a high of over 3.2 million BTC. The outflow was particularly aggravated in the last quarter of 2022, when the collapse of crypto exchange FTX led to panic and investors started to opt for self-custody in cold wallets. During this period, exchange reserves dropped from 2.512 million BTC to 2.158 million BTC in a month.

https://x.com/cryptoquant_com/status/1733005131216744749?s=20 

Reserve on exchanges started to increase slowly in the early months of 2023, climbing back up to 2.240 million in May. However, things started to change in June, as filings by BlackRock and other investment companies for spot Bitcoin ETF trading in the US led to the start of a bullish sentiment. 

The reserve on centralized exchanges has been on a steady drop since then. At the time of writing, the exchange reserve has now crossed below 2 million BTC, a level it has yet to reach since December 2017. This metric’s six-year low is particularly interesting, considering Bitcoin’s total circulating supply has increased since 2017. Bitcoin’s total supply now stands at 19,564,812 BTC, a 16% increase from December 2017’s supply of 16.78 million BTC.

Outlook For Bitcoin Price: Bull Signal?

Although there are technically more bitcoins now available to go around, the increase in adoption is making it increasingly harder for traders to get a hold of the asset. Dropping exchange supply is a bullish signal for crypto assets and periods of low exchange supply have historically been associated with the beginning of significant Bitcoin bull runs. The last time Bitcoin had a drastic drop in exchange reserve was in 2020, and the crypto would later go on to reach its all-time high the year after.

Bitcoin is currently spearheading new inflows into the crypto industry, with Coinmarketcap’s Fear and Greed Index now pointing to an extreme greed of 82. The industry’s leading asset recently broke over $44,000 for the second time this week and is now up by 14% in a 7-day timeframe. Bitcoin is poised for extreme gains in 2024, and many analysts have predicted a price target above $100,000.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Freepik

Posted on

Bitcoin Bull Signal Returns: Exchange Supply Hits Lowest Level Since 2017

On-chain data has revealed an increasing sentiment of holding Bitcoin among investors. Bitcoin has been on a roll since the start of the month, pushing its price to new yearly highs. At the same time, exchange data from CryptoQuant reveals that the crypto might be gearing up for a sustained bull run. According to the on-chain analytics platform, Bitcoin’s exchange supply, the amount available for purchase on exchanges, has dropped to its lowest levels since 2017 

Exchange Supply Drops To Lowest Level In Six Years

The Bitcoin market is flashing a bull signal that correlates with anticipation of spot Bitcoin ETF applications. CryptoQuant’s exchange reserve chart demonstrates that the supply of Bitcoin has been steadily decreasing from centralized exchanges since 2020 when it reached a high of over 3.2 million BTC. The outflow was particularly aggravated in the last quarter of 2022, when the collapse of crypto exchange FTX led to panic and investors started to opt for self-custody in cold wallets. During this period, exchange reserves dropped from 2.512 million BTC to 2.158 million BTC in a month.

https://x.com/cryptoquant_com/status/1733005131216744749?s=20 

Reserve on exchanges started to increase slowly in the early months of 2023, climbing back up to 2.240 million in May. However, things started to change in June, as filings by BlackRock and other investment companies for spot Bitcoin ETF trading in the US led to the start of a bullish sentiment. 

The reserve on centralized exchanges has been on a steady drop since then. At the time of writing, the exchange reserve has now crossed below 2 million BTC, a level it has yet to reach since December 2017. This metric’s six-year low is particularly interesting, considering Bitcoin’s total circulating supply has increased since 2017. Bitcoin’s total supply now stands at 19,564,812 BTC, a 16% increase from December 2017’s supply of 16.78 million BTC.

Outlook For Bitcoin Price: Bull Signal?

Although there are technically more bitcoins now available to go around, the increase in adoption is making it increasingly harder for traders to get a hold of the asset. Dropping exchange supply is a bullish signal for crypto assets and periods of low exchange supply have historically been associated with the beginning of significant Bitcoin bull runs. The last time Bitcoin had a drastic drop in exchange reserve was in 2020, and the crypto would later go on to reach its all-time high the year after.

Bitcoin is currently spearheading new inflows into the crypto industry, with Coinmarketcap’s Fear and Greed Index now pointing to an extreme greed of 82. The industry’s leading asset recently broke over $44,000 for the second time this week and is now up by 14% in a 7-day timeframe. Bitcoin is poised for extreme gains in 2024, and many analysts have predicted a price target above $100,000.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Freepik

Posted on

Bitcoin Bull Signal Returns: Exchange Supply Hits Lowest Level Since 2017

On-chain data has revealed an increasing sentiment of holding Bitcoin among investors. Bitcoin has been on a roll since the start of the month, pushing its price to new yearly highs. At the same time, exchange data from CryptoQuant reveals that the crypto might be gearing up for a sustained bull run. According to the on-chain analytics platform, Bitcoin’s exchange supply, the amount available for purchase on exchanges, has dropped to its lowest levels since 2017 

Exchange Supply Drops To Lowest Level In Six Years

The Bitcoin market is flashing a bull signal that correlates with anticipation of spot Bitcoin ETF applications. CryptoQuant’s exchange reserve chart demonstrates that the supply of Bitcoin has been steadily decreasing from centralized exchanges since 2020 when it reached a high of over 3.2 million BTC. The outflow was particularly aggravated in the last quarter of 2022, when the collapse of crypto exchange FTX led to panic and investors started to opt for self-custody in cold wallets. During this period, exchange reserves dropped from 2.512 million BTC to 2.158 million BTC in a month.

https://x.com/cryptoquant_com/status/1733005131216744749?s=20 

Reserve on exchanges started to increase slowly in the early months of 2023, climbing back up to 2.240 million in May. However, things started to change in June, as filings by BlackRock and other investment companies for spot Bitcoin ETF trading in the US led to the start of a bullish sentiment. 

The reserve on centralized exchanges has been on a steady drop since then. At the time of writing, the exchange reserve has now crossed below 2 million BTC, a level it has yet to reach since December 2017. This metric’s six-year low is particularly interesting, considering Bitcoin’s total circulating supply has increased since 2017. Bitcoin’s total supply now stands at 19,564,812 BTC, a 16% increase from December 2017’s supply of 16.78 million BTC.

Outlook For Bitcoin Price: Bull Signal?

Although there are technically more bitcoins now available to go around, the increase in adoption is making it increasingly harder for traders to get a hold of the asset. Dropping exchange supply is a bullish signal for crypto assets and periods of low exchange supply have historically been associated with the beginning of significant Bitcoin bull runs. The last time Bitcoin had a drastic drop in exchange reserve was in 2020, and the crypto would later go on to reach its all-time high the year after.

Bitcoin is currently spearheading new inflows into the crypto industry, with Coinmarketcap’s Fear and Greed Index now pointing to an extreme greed of 82. The industry’s leading asset recently broke over $44,000 for the second time this week and is now up by 14% in a 7-day timeframe. Bitcoin is poised for extreme gains in 2024, and many analysts have predicted a price target above $100,000.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Freepik

Posted on

Bitcoin Bull Signal Returns: Exchange Supply Hits Lowest Level Since 2017

On-chain data has revealed an increasing sentiment of holding Bitcoin among investors. Bitcoin has been on a roll since the start of the month, pushing its price to new yearly highs. At the same time, exchange data from CryptoQuant reveals that the crypto might be gearing up for a sustained bull run. According to the on-chain analytics platform, Bitcoin’s exchange supply, the amount available for purchase on exchanges, has dropped to its lowest levels since 2017 

Exchange Supply Drops To Lowest Level In Six Years

The Bitcoin market is flashing a bull signal that correlates with anticipation of spot Bitcoin ETF applications. CryptoQuant’s exchange reserve chart demonstrates that the supply of Bitcoin has been steadily decreasing from centralized exchanges since 2020 when it reached a high of over 3.2 million BTC. The outflow was particularly aggravated in the last quarter of 2022, when the collapse of crypto exchange FTX led to panic and investors started to opt for self-custody in cold wallets. During this period, exchange reserves dropped from 2.512 million BTC to 2.158 million BTC in a month.

https://x.com/cryptoquant_com/status/1733005131216744749?s=20 

Reserve on exchanges started to increase slowly in the early months of 2023, climbing back up to 2.240 million in May. However, things started to change in June, as filings by BlackRock and other investment companies for spot Bitcoin ETF trading in the US led to the start of a bullish sentiment. 

The reserve on centralized exchanges has been on a steady drop since then. At the time of writing, the exchange reserve has now crossed below 2 million BTC, a level it has yet to reach since December 2017. This metric’s six-year low is particularly interesting, considering Bitcoin’s total circulating supply has increased since 2017. Bitcoin’s total supply now stands at 19,564,812 BTC, a 16% increase from December 2017’s supply of 16.78 million BTC.

Outlook For Bitcoin Price: Bull Signal?

Although there are technically more bitcoins now available to go around, the increase in adoption is making it increasingly harder for traders to get a hold of the asset. Dropping exchange supply is a bullish signal for crypto assets and periods of low exchange supply have historically been associated with the beginning of significant Bitcoin bull runs. The last time Bitcoin had a drastic drop in exchange reserve was in 2020, and the crypto would later go on to reach its all-time high the year after.

Bitcoin is currently spearheading new inflows into the crypto industry, with Coinmarketcap’s Fear and Greed Index now pointing to an extreme greed of 82. The industry’s leading asset recently broke over $44,000 for the second time this week and is now up by 14% in a 7-day timeframe. Bitcoin is poised for extreme gains in 2024, and many analysts have predicted a price target above $100,000.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Freepik

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Bitcoin Market Cap Could Rise By $1 Trillion After Spot ETFs Launch: CryptoQuant

CryptoQuant has revealed in its latest report that the Bitcoin market cap could rise by as much as $1 trillion after launching the spot ETFs.

Bitcoin Could See A 165% Rise When The Spot ETFs Launch

Yesterday, fake news of the approved iShares Bitcoin spot ETF took the sector by storm, as all cryptocurrencies observed sharp rallies. At the peak of this surge, BTC had approached the $30,000 level.

However, when the market realized the truth about the announcement, the asset quickly retraced to the levels it was at before the rally. While the gains were only brief, the rally nonetheless provided a glimpse into the strong reaction that the market could see to the launch of a real ETF.

This was just one spot ETF; however, several others are waiting in line to be approved. How would the market look like when all these ETFs have launched? In its new report, the on-chain analytics firm CryptoQuant has discussed precisely that.

Bitcoin Spot ETFs

The above table shows information about the various companies waiting to be approved for the Bitcoin spot ETF, including the total size of their assets under management (AUM).

“Although these ETFs are not expected to be approved this year, the probability that they will be approved by the final deadline (March 2024) has been growing as a result of favorable court rulings for Grayscale (GBTC Fund) and XRP in their respective legal fight against the SEC,” says the firm.

In total, these companies’ AUM are around $15.6 trillion. If they put just 1% of this amount towards BTC, it would mean inflows of a whopping $155 billion for the asset. “To put it in context, these amounts represent almost a third of the current market capitalization of Bitcoin,” notes CryptoQuant.

Now, how this capital inflow could affect the market cap of BTC isn’t exactly simple to say. Generally, the market cap increases by more than just the raw capital entering the cryptocurrency.

The firm has used the “realized cap” metric to assess this relationship. The realized cap is a capitalization method for BTC that calculates its total value by assuming that the value of each coin is the same as the price at which it was last transacted on the blockchain.

The realized cap can be imagined as the total investment made by the investors, accounting for the prices at which each bought their coins. The chart below shows how this realized cap has compared with the market over the years.

Bitcoin Realized Cap

The graph shows that the market cap and realized cap usually have noticeably different growth rates, as they have always followed pretty different paths.

CryptoQuant has calculated the ratio between the annual growths of the two caps and has found that for most of the asset’s history, the market cap has grown by 3 to 6 times faster than the realized cap.

If the realized cap grows by $155 billion when the spot ETFs get approved and the asset managers allot 1% of their AUM to Bitcoin, the market cap could grow by between $450 and $900 billion.

The report notes this figure implies “the market cap would increase between 82% and 165% from the current level and that Bitcoin price could reach between $50K and $73K as a result of these inflows of fresh money.”

BTC Price

Bitcoin has enjoyed some uptrend over the past few days as the asset has now climbed above the $28,500 level.

Bitcoin Price Chart

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CryptoQuant’s Bitcoin PnL Index Forms Bullish Crossover

CryptoQuant’s Bitcoin on-chain PnL index has surged above its 365-day MA recently, a crossover that has historically signaled early bull markets.

Bitcoin On-Chain PnL Index Has Formed A Bullish Crossover

As per data from the on-chain analytics firm CryptoQuant, the index is indicating a buy signal for BTC right now. The “CryptoQuant on-chain PnL index” is a metric that combines three different indicators into one to point out tops, bottoms, and cyclical shifts in the price of Bitcoin.

The first of the metrics that the PnL index uses is the “MVRV ratio,” which is a model that checks whether BTC is currently overvalued or undervalued by comparing the crypto’s market cap with a fair value model called the “realized cap.”

The second relevant indicator here is the “NUPL,” which tells us whether the Bitcoin market as a whole is currently carrying an unrealized profit or an unrealized loss. This metric can provide hints about whether there is a buying or selling motive among investors right now.

Finally, there is the Spent Output Profit Ratio (SOPR), which tracks whether the average holder is selling at a loss or a profit at the moment. The SOPR shouldn’t be confused with the NUPL, as the quantity being measured by the NUPL is the “unrealized” profit/loss, which is the profit or loss that investors have accumulated but are yet to harvest (or “realize”) as they are still to sell their coins.

There are actually two SOPR metrics of interest here; the version specifically for the short-term holders (STHs) and that for the long-term holders (LTHs). The entire Bitcoin market can be divided into these two groups, with the criteria being that holders who bought within the last 155 days fall into the former cohort, while those who bought before that fall into the latter.

Now, here is the data for the CryptoQuant on-chain PnL index, which takes all these different Bitcoin indicators and combines them into one model for the crypto:

Bitcoin CryptoQuant PnL Index

As displayed in the above graph, the CryptoQuant on-chain PnL index has sharply risen out of the historical bottom zone recently. The chart also includes the curve for the 365-day moving average (MA) of the metric, and it’s clear that the index has crossed above this MA with the latest surge.

Historically, such a crossover during bearish periods has signaled a transition toward an early bull market. If this pattern holds true this time as well, then the current breakout could be good news for the ongoing rally.

However, back in 2015, an initial breakout like the current one did end up failing, and it was only later that a successful transition took place. Nonetheless, CryptoQuant notes “although it is still possible for the index to fall back below, the CryptoQuant PnL Index has issued a definitive buy signal for BTC.”

BTC Price

At the time of writing, Bitcoin is trading around $22,900, up 11% in the last week.

Bitcoin Price Chart

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Miner Sends Bitcoin To Binance, 4th Largest Transaction In 2 Months

Events around the world’s largest cryptocurrency by market cap, Bitcoin seems to swing uncontrollably. As a result, there has been a drastic drop in price in the entire crypto market, with Bitcoin unable to maintain its stronghold. This is contrary to the expectations of many institutional investors and other participants in the industry.

BTC had plummeted to $20K over the past few weeks. With increasing volatility of all digital assets, the total crypto market cap plunged to the $1 trillion level. But though there is still not much hope for positive outplay for Bitcoin, the record of its miner-to-exchange transaction is quite massive.

Miners Send Large Amount Of Bitcoin To Binance

According to a source, a BTC miner transferred up to 4,400 BTC to Binance, the global leading crypto exchange. The transaction, whichit’sk place some days ago, has spiked a mixed reaction in the industry.

Reporting on this transaction, a CryptoQuant analyst noted that it’s the 4th largest transaction over the past two months regarding miners to exchanges transfers. Also, the analyst stated that the transaction came from Poolin, a top Bitcoin mining organization.

Blockin developed Poolin. Its function as a crypto mining pool is prominent due to some unique features and functions. Besides its wide range of helpful mining tools, Poolin offers miners a good income from mining. Hence, it is rated among the top preferences for crypto miners.

There have been three transactions from miners to exchanges similar to this recent transaction. These include the transfer of 2,600 BTC in May and 4,700 BTC on June 16, and the transaction of 5.700 BTC on June 22.

BTC Almost Hits The Bottom

The continuous downtrend of Bitcoin raises more concerns from several people within and outside the industry. According to an analyst from CryptoQuant, the MVRV indicator revealed that BTC is almost approaching the bottom region. The analyst reported on the implication for the leading crypto asset using the Adjusted Output Profit Ratio.

Source: CryptoQuant

The analyst examined the period of the drastic bear market and resulting losses. He noted that the resistance got through the prolonged times of realization below base cost reverted to gain. Also, such a situation could only happen when network participants decide to leave the market by disregarding their losses.

Once it gets to this extent, most virtual currencies will experience a sudden sell-off. The sales will be at an average price in a broader declined market during recover during recovery periodsy periods.

As per the analyst, the entire process points to a possible breakout from the bearish trend. The future trend puts the market in the north. The price of BTC is currently below the $20,000 level. At the time of press, BTC trades at $19,027.

Bitcoin price moves above $19,000 on the chart. Source: BTCUSDT Tradingview.com
Featured image from Pixabay and chart from TradingView.com