Supply of Bitcoin on crypto exchanges keeps declining and has reached an 18 months low that was last recorded early January. Reduction in BTC exchange supply has been observed since the start of July. According to crypto data provider Santiment, the decreasing supply eliminates the likelihood of substantial sell-offs.
As investors continue to keep their fingers crossed for a market uptrend in the coming months, exchanges, on the other hand, witness more Bitcoin withdrawals by whales already holding 10,000 to 100000 BTC. A strong uptrend is yet to occur; the market has been fluctuating, but investors are more bullish than ever. Some of them anticipate a major correction before the bulls will take over.
BTC Records 4% Increase Within a Day
In what may seem like the start of the anticipated uptrend, Bitcoin recorded a 4% peak after trading at the mark of $32,700 on Friday. Over the following day, its price did a leap to $33,944 and is now back to $33,800. Whether the bull run has begun or not, investors continue to wait with bated breath.
The one-day increase recorded is attributed to the outcome of the talk between Elon Musk and Jack Dorsey, including Cathie Wood, during the Bitcoin B-word conference that took place on Wednesday. Elon Musk is reported to have made positive remarks about Bitcoin, even going further to announce that himself and Tesla are still holding onto the assets and will not sell off anytime soon. Jack and Cathie also made their respective comments in support of Bitcoin.
Exchanges Report Several Bulk BTC Withdrawals by Whales
Meanwhile, Binance Exchange reported the transfer of over 3000 BTC from a custodial wallet into Xapo non-custodial wallet. Another leading crypto exchange also noted at different times, the withdrawal of 7,062 BTC and 1,000 BTC by different wallets. Usually, it is the practice of investors to move their crypto assets into non-custodial wallets, as they wait for a price spike before moving back into exchanges to sell off.
Interestingly, institutional investors continue to accumulate Bitcoin at a discount. As such, a price surge is likely. In a related development, Tokenhell reported that mining difficulty suffered a reduction, making mining more attractive for miners. Also, miners continue to accumulate their BTC rewards. Price prediction for BTC during the next bull run is $100k, but the asset is trading far below its May ATH of $65k.
In a related development, traders are skeptical about Bitcoin futures as open interest on the asset decreases. Investors are now using stablecoins as their preferred collateral rather than cryptocurrencies. As Lex Moskovski put it, institutional investors are wary of wagering on Bitcoin in the wake of fluctuation.